Fear, Panic And Chaos!

“Markets Stop Panicking When Central Banks Start Panicking.”

In what could be termed as one of the most tumultuous weeks for the markets since the “black swan” event that caused a flash crash of epic proportions three years ago, the collapse of SVB initiated a sequence of events which led to historical moves in the sovereign bond markets.

Though equity markets remain unnerved and the selling pressure was concentrated among the banking names, the bond markets witnessed excruciating pain. Bond markets underwent a massive panic attack as liquidity dried up and volatility surpassed unprecedented 2008 GFC levels.

It was chaos on trading desks as traders who started their careers post the GFC had never encountered such violent moves and deteriorating liquidity conditions.

In Europe, as rumours spread over the health of Switzerland’s second-largest bank: Credit Suisse, panic and fear gripped…