Market Sentiment • 1552 implied HN points • 12 Mar 23
- Understanding the different sides of risk is crucial - the likelihood of getting hit, the average impact, and the extreme consequences.
- Banks operate by lending out deposits at higher rates to make profits, but this system poses the risk of bank runs.
- SVB's rapid collapse was triggered by increased stress, a market sell-off, and a loss of customer confidence due to poor communication.