Welcome to our latest Economic and Market Outlook – April 2023.
The recent banking crisis in the US, which originated in the coronavirus stimulus packages, left many banks with an influx of deposits and a choice between originating more loans or purchasing higher yielding debt securities. Many banks chose the latter and invested in fixed rate assets such as government bonds and mortgage-backed securities.
Find out more about how this strategy led to the largest banking failure in the US since the global financial crisis, how it affects the Australian economy, as well as our outlook on Australian and international equities.
This edition covers the following topics:
- International economy – banks facing a choice
- The global banking system affecting the Australian economy
- Outlook and sector view for Australian equities
- Outlook for international equities