Stock Securities Sees Opportunity in the Banking Crisis
March 24, 2023
The failures of Silicon Valley Bank and Signature Bank and UBS’s takeover of Credit Suisse have led to heightened critical analysis regarding liquidity and solvency within the worldwide banking system. While the banking industry is stable and well-capitalized by historic standards, it may again be tested later in 2023 or 2024. The reason is a confluence of forces at work: (i) rapidly rising rates and the Fed’s unrelenting focus on achieving U.S. price stabilization; (ii) the resulting structurally higher rate environment for the foreseeable future; (iii) banks slamming on the lending brakes and the coming credit squeeze; and (iv) unprecedented public and private sector debt levels including mismatches in duration for banks and non-banks. Look for new opportunities to emerge in extending credit to small and mid-sized businesses for those with cash to deploy and the re-emergence of distressed debt funds as liquid investors seek opportunities in the world-wide sell-off of riskier assets to meet collateral and margin requirements of challenged lenders.
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About Stock Securities LLC
Stock Securities LLC is a FINRA, SEC and SIPC registered broker-dealer specializing in corporate strategy, M&A transaction advisory and private placements. Founded in Princeton, New Jersey in 1993, Stock Securities, its predecessor and affiliated companies have initiated, arranged or otherwise participated as a principal in acquisition, private debt, merger, IPO, joint venture, private equity placement, private investment in public equity, and capital restructurings valued at more than $20.0 billion.
Please contact us or visit our website at www.stocksecurities.com for additional information. We welcome proposals to engage for mutual benefit and promise a prompt and confidential response.
