banks, behind Silicon Valley Bank (SVB) and Signature Bank, both of which have been shut down. Notably, First Republic carries the third highest rate of uninsured deposits among U.S. Markets move lower as pressures on regional banks continue to remain an overhang: Markets were mostly lower on Thursday, as another regional bank, First Republic, was down nearly 30% in early trading. In our view, markets have been gravitating towards traditionally defensive assets, both in bonds and equities, during this period of uncertainty, a trend that may persist until a more clear path for economic recovery emerges.

Treasury yields continued their trend lower as well, with the 2-year yield down around 0.09% to 3.89%, well below the 5.0% level we saw earlier this month. The renewed volatility comes despite the news that Swiss National Bank has agreed to support the financial stability of Credit Suisse with a $54 billion loan, deeming it a “systemically important bank.” Credit Suisse shares had rebounded close to 30% on the news. The bank’s debt had also been downgraded by both S&P and Fitch ratings agencies.

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