The banking sector is collapsing - How to trade in a high interest rate environment?

Press Release: Since the end of last week, the banking sector has been shaking to its foundations. After the recent collapse of Silvergate, Silicon Valley Bank and Signature Bank closed their doors in recent days. Is this the beginning of a domino effect, or just isolated cases of bad management? Investment company XTB broadcasted a stream about this extraordinary event, in which the investor Jaroslav Brychta, editor-in-chief of Roklen24.cz Jan Berka and Chief Analyst of XTB Jiří Tylečekthey discussed the most important things.

According to everyone involved, the context of the entire situation is important, which is still largely the impact of the covid shock and the subsequent era of cheap money, when bank deposits grew at a record high and banks (given the economic situation at the time) directed money into "riskier" assets. One of the main reasons can be attributed to poor money and risk management on the part of the failing banks. This is of course a live situation that can evolve at any time, but for now it seems that most account holders should not lose their deposits, or at least not all of them. However, the situation of the shareholders of these companies is not so positive.

You can also read for free analytical report on the subject of SVB and the banking sector.

The collapse of these banks was undoubtedly a big blow to the crypto world - Silvergate and Signature Bank were the main banks for US crypto companies. For example, they had accounts with the crypto exchange Coinbase or the company Circle, which is behind the stable coin USDC (a crypto token with a value of one dollar). It is a well-known fact that crypto companies have big problems with banking, so it will probably be difficult to find a replacement. On the other hand, large banks such as JPMorgan Chase, Bank of America or Citibank could benefit from this situation, based on the acquisition of new clients.

How you can benefit from such situations in the future, for example by short-term trading (shorting), or diversify your portfolio and thus reduce losses, you can learn at Online Trading Conference, at which he will speak six leading Czech and Slovak financial experts and professional traders. The advantage is that it will be broadcast online, so you can watch everything directly from the comfort of your home.