Podcast: Banking sector stress – what do investors need to know?

Banks worldwide – and Europe’s lenders in particular – are in the spotlight following the closure of Silicon Valley Bank, the biggest US bank failure since 2008.

We held a special live webinar with our clients on 17 March, hosted by LGIM’s Chief Investment Officer, Sonja Laud, to discuss the implications for investors.

Sonja was joined by Colin Reedie, Head of Active Strategies; Christopher Jeffery, Head of Rates & Inflation Strategy; and Dan Lustig, Senior Credit Analyst. Among other things, the panel discussed:

•  Why we believe the challenges faced by Credit Suisse* are largely idiosyncratic
• The macro context of tightening monetary policy and markets pricing in – incorrectly, in our view – a ‘goldilocks’ scenario earlier this year
• The tough balancing act for central banks, which need to curb inflation while underpinning financial stability
• The potential for better entry points into risk assets later in 2023
• How we at LGIM are positioning across our Active Strategies and Asset Allocation teams
• Whether the situation is comparable to the global financial crisis – and the odds of another ‘Lehman moment’

 The webinar was moderated by Max Julius, Head of Content. You can listen to a recording on our podcast channel, LGIM Talks, via Apple, Audioboom and Spotify.

*For illustrative purposes only. Reference to a particular security is on a historic basis and does not mean that the security is currently held or will be held within an LGIM portfolio. The above information does not constitute a recommendation to buy or sell any security.