The Yield Curve Proves Itself Again: SVB's Collapse

1 min read
Source: Barron's
The Yield Curve Proves Itself Again: SVB's Collapse
Photo: Barron's
TL;DR Summary

The inverted yield curve, a favorite negative signal of financial markets, has been flashing red since July, indicating that investors expect higher interest rates or economic risk in the near term. The collapse of SVB, a German bank, shows that the yield curve is always right in predicting bad news.

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