- Both U.S. and international equity markets rallied in the last few days of March to end the month (and the quarter) with positive returns.
- As long-term interest rates stabilized, U.S. bonds recovered most of February’s losses, ending the quarter at January-month-end levels.
- Despite a barrage of economic and policy news, the quarter will be remembered most for the failures of Silicon Valley Bank and Signature Bank.
- Recent bank failures are more a symptom of the Fed’s rapid rate hiking cycle than systemic solvency risk, but they are leading to a sharp contraction in lending that could increase the risks of a recession.
Read and download the commentary here.