svb
Mortgage Rates Down Big, But Lagging Other Indicators – Mortgage News Daily
Mortgage Rates Down Big, But Lagging Other Indicators Mortgage News Daily
FDIC Insurance: What It Is And How It Works
With recent moves by the the Federal Deposit Insurance Corporation (FDIC), in conjunction with the Treasury and Federal Reserve Bank, to protect deposits at two large banks, many people are wondering what the FDIC is, exactly, and what it does. The Federal Deposit Insurance Corporation, or FDIC, is an independent agency of the U.S. government. […]
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Biggest Rally For Short-Term Rates in Decades, Why?
Despite the announcement of a Fed/Treasury/FDIC backstop for SVB and Signature Bank, financial markets are trading as if current events imply a sea change for economic momentum, inflation, and the Fed rate hike trajectory. It’s pretty much that simple. What’s not so simple is determining whether or not that trading will prove to be justified by changes in consumer behavior. Also complicated will be the task of reacting to economic data for the month of February when the sea change wasn’t even an idea until last week.
Mortgage Rates vs. Bank Failures
Youâve heard about, you know about it. Last week, Silicon Valley Bank was the target of a bank run, prompting the FDIC to take over the troubled company on March 10th. It was the first bank failure since October 2020, and was quickly followed by another failure, NYC-based Signature Bank. That prompted the Federal Reserve… Read More »Mortgage Rates vs. Bank Failures
The post Mortgage Rates vs. Bank Failures appeared first on The Truth About Mortgage.
How the run on banks is affecting the mortgage market
The collapse of Silicon Valley Bank and Signature may trigger lower mortgage rates, but it will likely increase scrutiny on IMBs and their risk management strategies.
Amazon Employees Will Be Able to Use Stock as Collateral for … – The Wall Street Journal
Amazon Employees Will Be Able to Use Stock as Collateral for … The Wall Street Journal
Wild Ride Before and After Jobs Report Due to SVB
The most notable development on jobs day has stunningly turned out to be the trading that came before the jobs report in the overnight session. Bonds embarked on a fairly big rally, ostensibly due to Silicon Valley Bank news. 10yr yields were roughly 10 bps lower before NFP came in at 311k vs 205k f’cast. Anyone could be forgiven for think such a number meant trouble for bonds, but bonds paradoxically rallied (with an eye on higher unemployment and lower wages). After a brief correction, the gains continued all morning, ultimately adding up to the biggest rally day since November 10th. But how much–if any–of this is due to the jobs report? That’s a tough call, but only inasmuch as deciding if we want to give the jobs report ANY credit. It may deserve anywhere between 5-20%, but the market is clearly trading the SVB news. One of the clearest indications of that comes from the stock market. The prevailing trend in stocks and bonds has been for both sides of the market to rally and sell together based on shifts in Fed rate hike expectations. This makes for the classic mirror image trading pattern we sometimes refer to as the “Fed accommodation trade.” Over the past 2 days, however, as the SVB news intensified, markets shifted back to the old school “risk-on/risk-off” trade. That doesn’t mean this move isn’t “real.” To be sure, Fed Funds Futures are reacting as well. That said, inflation is still the big picture driver of rate momentum. SVB news only matters in the big picture if it kicks off a mini-wave of bank failures that somehow manage to impact inflation or otherwise serve as a canary in a coal mine for a harder economic landing. Markets may be braced for that possibility today, but they’ll forget all about it if next week’s CPI comes in hot. Conversely, if CPI comes in cooler, it could add to the momentum. Bottom line: we’re still data dependent, but now with a nice little boost to prevailing levels.
Housing Market Tracker: Mortgage rates fall after SVB failure
Mortgage rates fell last week after the failure of Silicon Valley Bank spooked bond traders worried about contagion.
Fed discusses easing access to discount window to help banks
The Federal Reserve is considering easing the terms of banks’ access to its discount window, giving firms a way to turn assets that have lost value into cash without the kind of losses that toppled SVB Financial Group. Such a move would increase the ability of banks to keep up with demands from depositors to … [Read more…]