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1. After a weekend of uncertainty for Silicon Valley Bank clients and Wall Street the FDIC committed to resolving SVB in a way that "fully protects" all depositors, giving them access to their funds starting today. In addition, the Fed launched the Bank Term Funding Program (BTFP) to prevent further collapses, providing distressed banks with liquidity via one-year loans. Q: Is the risk of contagion from the SVB collapse over? Let us know at Inside.com. |
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2. On Monday, investors showed signs of reassurance from the Fed's quick response to the SVB implosion, causing the market to close relatively flat. The NASDAQ Composite closed 0.45% higher, with the S&P 500 and the Dow Jones ending the day 0.15% and 0.28% lower, respectively. |
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3. First Republic Bank shares plummeted 60% on Monday, following a 33% decline last week, as investors worried about the fallout from SVB's collapse. The drop in stock price came despite First Republic securing additional liquidity from the Federal Reserve Bank and JPMorgan Chase & Co over the weekend, bringing its total unused liquidity to $70B. |
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4. Pfizer has announced plans to acquire biotechnology firm Seagen in a $43B deal that will boost the drugmaker's portfolio of cancer therapies. The deal will allow Pfizer to provide Seagen's treatments "at a scale that has not been seen before." Seagen will receive $229 per share in cash, representing a 32.7% premium on its close price from Friday. |
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5. Wall Street sent Charles Schwab shares 11% lower today, worsening last week's 23% drop. The bank, the eighth-largest in the U.S. by assets, defended its portfolio, highlighted its access to liquidity, and reported that 80% of its deposits are FDIC insured. |
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6. Silver Lake and CPP Investments will acquire Qualtrics, including 100% of the survey software firm's outstanding shares, for $12.5B in an all-cash transaction. The deal will include the purchase of SAP's majority ownership in Qualtrics, which it purchased for $8B in 2018. |
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7. As investors rushed to buy into U.S. government bonds following the SVB failure, the 2-year Treasury yield fell 59 basis points to 4.05%. Since Wednesday, the yield has dropped by 100 basis points, the largest three-day decline since October 1987. The yield for the 10-year Treasury slid by 15 basis points to 3.54%. |
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