I am not too worried as they can just buy whatever that fails with unlimited cash that could be minted our of thin air.We may have to change the title of this thread with Credit Suisse instead of SVB. Regulators, SNB and UBS are apparently negotiating to bail it somehow and prevent a disaster.
Credit Suisse is almost 3 times as big as Lehman Brothers was when it declared bankruptcy, almost 10 times bigger than SVB. It is also a systemic bank.
If there is no positive outcome before markets open, tomorrow may be an interesting day !
Central banks have a lot of tools these days. They can even do targeted asset purchase, leaving interest rate high as it is now.
A lot people are speculating if companies are failing this will force Fed to ease. Not true, they can keep rates high while buying whatever that is too big to fail.
Bank of England to buy 65 billion pounds of UK bonds to stem rout
The Bank of England stepped into Britain's bond market to stem a market rout, pledging to buy around 65 billion pounds ($69 billion) of long-dated gilts after the new government's tax cut plans triggered the biggest sell-off in decades.
www.reuters.com
Bank of England started bond buying last year to save their own debt issue.
Easing and rescue for the “ICU patients”, tightening for everyone else to fight inflation.
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