Silicon Valley Bank

The crippling doom loop between the banks and the real economy we saw in 2008 is unlikely to feature in the coming recession, says Ruffer’s Jamie Dannhauser, who is more concerned about a violent liquidation in financial markets.

Investors holding out for a monetary policy hero will have to keep holding out. And as regulators put out spot fires in the global banking system, they’ll need to reckon with the new behemoths they’ve made.

Despite increased volatility emanating from the banking sector, tech stocks have been supported by falling bond yields on fears the global economy could slip into recession this year, with big-name companies leading the gains.

The US Federal Reserve may have guaranteed deposits at the failed bank, but its collapse constitutes a major scare for private equity managers with outsized technology exposure and is creating stress points in finance systems the world over.