Banking crisis: Investors fear further defaults

Frankfurt For seven months, it was inflation and higher-than-expected rate hikes by the central banks that worried investors the most. But the financial world has changed in the past two weeks.

The bankruptcies of Silicon Valley Bank and Signature Bank in the USA and the emergency takeover of Credit Suisse by UBS are putting another problem in the focus of institutional investors: According to Bank of America, a so-called systemic credit event, i.e. extensive payment defaults, is in March moved up to number one among the biggest potential risks that could weigh on the markets.

Every month, Bank of America (BofA) asks institutional investors worldwide about their assessment of the economy and how they position themselves in various investment funds. The well-noticed survey was last run between March 10 and 16 – i.e. after the collapse of the Silicon Valley Bank and shortly before the rescue of Credit Suisse.