First Republic a Fourth Failure as Credit Crunch Claims Another Victim
May 1, 2023
Another regional bank falls, but the markets are seeing the forest from the trees as challenges appear contained.
Another regional bank falls, but the markets are seeing the forest from the trees as challenges appear contained.
Moving away from an abnormal regime of crisis-era stimulus won’t be a smooth process. But the volatility should be easier to stomach knowing that the destination is likely to be a healthier, more balanced economy.
Banks and borrowers must now deal with tighter credit conditions, bringing a quicker end to rate hikes but also more economic risks.
For all the gloomy talk about the economy in 2023, stabilizing interest rates could be a bright spot for investors. But with imbalances lurking in the shadows, 2023 could be the year for higher-quality bonds, select large- and small-cap stocks, and private-market investments.