Macro Briefing: 13 March 2023

* All SVB depositors will be protected, say US regulators
* US regulators close another bank: Signature Bank
* Wall Street considers how far the banking panic will spread
* US Banks have $620 Billion in unrealized losses, raising contagion worries
* North Korea fires submarine missiles ahead of US-South Korea military drills
* Biden bars oil drilling for nearly 3 million acres in Alaska
* Goldman Sachs no longer sees a Fed rate hike for the March 22 policy meeting
* Appeal of cash will increase in years ahead, predicts co-CIO at Bridgewater
* US payrolls rose more than expected in February
* US 10-year Treasury yield falls sharply amid SVB bank failure:

Some of the SVB bank failure is linked to the Federal Reserve’s rate hikes, charges the head of an investment platform. “The Fed is causing a liquidity crunch,” says Brian Dally, co-founder, and CEO of Groundfloor, a retail investor marketplace. “It will show up in many expected and unexpected ways,” he told IBT. “SVB shows us that a liquidity crunch can be a tough place for ‘middlemen’ – this is what banks, REITs, and fund managers are. In the case of SVB, we’re seeing ‘maturity risk’ where because they invested so heavily into Treasury bonds, their investments declined in value as rates went up. This is fine if you can hold on to the investment until maturity, but they couldn’t and had to sell.”