IFR Euro Outlook: Things are breaking; Silicon Valley Bank plunges, losses in UST portfolio

...TODAY

We’ve all been waiting for it and now it’s happening; things are breaking. For all the debate about terminal rates and how aggressive the ECB and Fed will be, many have been espousing that the world’s major central banks will keep hiking rates until something breaks.

Now it appears things are starting to break, and one can be assured that SVB will not be the only institution which runs into trouble because of outsized losses on its fixed income portfolio...