Banks
I wasn’t planning to write about banks, but because of recent events and our ownership, I felt a few comments were needed.
The banking system took center stage last month, and that’s never a good thing. The collapse of Silicon Valley Bank and Signature Bank heightened concern that depositors would flee small and mid-sized banks. That led investors to sell bank stocks. Given our exposure to banks, March wasn’t a good month. We think it is important to consider how different our banks are from those that failed.
The failed banks were mostly funded by uninsured deposits that tend to move more rapidly than insured deposits. Further, the banks that failed invested those short-duration deposits in long-duration bonds. Because of the rapid...
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