Quote:“Investors are broadly assuming that regulators are going to step in and ringfence the sector if need be, and that’s what keeps it from spilling over to the broader market,” said Anastasia Amoroso, chief investment strategist at iCapital, in a phone interview. There’s also a second reason. Investors see the banking woes forcing the Fed to pause the rate-hike cycle or even begin cutting as early as June, she noted. An end to the yearlong rise in rates will remove a source of pressure on stock-market valuations.Why the worst banking mess since 2008 isn't freaking out stock-market investors --- yet
Quote:But with higher borrowing costs, weaker levels of economic growth, and fewer people working in offices in town and city centres after the pandemic, investors fear a perfect storm is brewing in the property sector. After the collapse of Silicon Valley Bank, the largest banking failure since 2008, and the UBS rescue of Credit Suisse, some City investors are worried the next phase of the crisis could pile pressure on the commercial property market– worth $20tn (£16tn) globally – if banks rein in their lending to the industry.Could office blocks be the next big casualty of the banking crisis? | Business | The Guardian