The market gyrations of the past week are not rooted in a banking crisis, in our view, but rather are evidence of financial cracks resulting from the fastest interest rate hike campaigns since the early 1980s. Markets have woken up to the damage caused by that approach – a recession foretold - and are starting to price it in. The latest cracks have appeared in the banking sector on both sides of the Atlantic. The cases are different – but markets clearly are looking at bank vulnerabilities through a new, high-interest rate lens. Markets have slashed their expectations of interest rate paths, expecting central banks ... (full story)