March 20 (Reuters) – Fears of a global banking crisis are continuing to swirl, with investors keeping a close eye on a dashboard of indicators that show how stress is rippling through markets and the banking system.
Many of these are continuing to flash warnings, though they have not surpassed levels seen during the COVID-19-fueled market turbulence of 2020. Despite a state-backed takeover of Credit Suisse by UBS AG, a wipeout of some Credit Suisse bondholders has added to concerns over broader bank capital.
Uncertainty around US banks remains high as well. Shares of embattled regional lender First Republic Bank were down 34% Monday afternoon following a downgrade by S&P Global and continuing worries over the bank’s liquidity despite a $30-billion rescue last week.
Here are some of the indicators investors are watching, and what they are showing:
Meanwhile, last week’s wild swings in the Treasury market have whipsawed investors and contributed to unease. The ICE BofAML MOVE Index, a measure of expected volatility in US Treasuries, surged to its highest level since the financial crisis last week as troubles in the banking sector forced investors to pull back on their views of how aggressively the Federal Reserve will raise rates in coming months.
With little certainty on what signal the central bank will send on the future trajectory of monetary policy at the conclusion of its meeting on Tuesday and Wednesday, many believe volatility in Treasuries is unlikely to die down anytime soon.
(Reporting by Davide Barbuscia, Yoruk Bahceli, Dhara Ranasinghe and Amanda Cooper; Graphics by Vincent Flasseur; Editing by Ira Iosebashvili and Cynthia Osterman)
This article originally appeared on reuters.com