So far, the main thing this insecurity around bank runs is doing is force people to buy bonds/money market funds to “insure” their assets.
That’s the only way to explain the recent rally in treasuries.
Surely this will not last long as everyone realizes that these bonds don’t yield enough to cover even half of inflation.
And when you look at Credit Suisse that just marked $17b of their bonds to Zero.... Someone is going to lose out
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