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Breach of Trust: Decoding the Banking Crisis

Musings on Markets

In March 2023, the fall of Silicon Valley Bank shocked investors not only because it was unforeseen, but also because of the speed with which it unfolded. That failure has had a domino effect, with Signature Bank falling soon after, followed by Credit Suisse in April 2023 and by First Republic last week.

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Good (Bad) Banks and Good (Bad) Investments: At the right price.

Musings on Markets

I also used the banking framework to argue that good banks have stickier deposits, with a higher precent of these deposits being non-interest bearing, that they invest in loans and investment securities on which they earn interest rates that cover and exceed the default risk in these investments. All Equity, All the time!

Banking 63
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Dissecting the Long-Term Performance of the Chinese Stock Market

Harvard Corporate Governance

The A share market is the second largest in the world in terms of total market capitalization, trailing only the US equity markets. In terms of cumulative, ‘buy and hold’ returns, the performance of the A share market is the worst among the group of large countries (see Figure 1). more…)

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SVB – Done deal

Valutico

The agreement is expected to alleviate some of the chaos that has been shaking the financial system, and the announcement has caused local bank stocks to rise significantly. About the buyer First Citizens Bank, is a US-based North Carolina state-chartered commercial bank that was founded in 1898. billion to USD 2.95

Banking 52
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HSBC: Chance for Success or Misstep?

Valutico

HSBC Holdings plc Weekly Valuation – Valutico | 20 March 2023 Link to the valuation Context The past weeks, the financial market was rattled by the collapse of Silicon Valley Bank, the go-to bank for tech startups, serving half of America’s venture capital-backed tech firms. USD 1.68) billion.

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Crash and Bailouts

Valutico

The collapse of SVB had a ripple effect through the banking sector, leading investors to fear that other banks could follow suit. As a result, they have been pouring into money market funds at the highest rate since the COVID pandemic began. The Flow-to-Equity analysis produced a value of CHF 120 (USD 130.5)

Banking 52
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Interest Rates, Earning Growth and Equity Value: Investment Implications

Musings on Markets

The first quarter of 2021 has been, for the most part, a good time for equity markets, but there have been surprises. The arrival of the COVID in February 2020, and the ensuing market meltdown, causing treasury rates to plummet across the spectrum, with three-month T.bill rates dropping from 1.5%

Equity 52