Why this is not a rerun of the global financial crisis
The closure of SVB and Signature Bank, and the sale of Credit Suisse, reflect idiosyncrasies that are not indicative of broad-based global systemic issues.
Although there are intensified strains within the global banking system and there is no doubt this is the most intense pressure since the global financial crisis (GFC) of 2008-09, these are only weak echoes of that time.
This is the collective wisdom of not only the “nervous consensus” across stabilising markets but also from analysts who were deeply embedded in financial markets through the Asian financial crisis, the GFC and then the European sovereign bond crisis.
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Scott Haslem is chief investment officer at LGT Crestone.
