In the midst of a banking crisis
It is not uncommon that something out of the ordinary will occur and suddenly change the trend in markets. Such abrupt changes are usually accompanied by high volatility. The first quarter of 2023 certainly provided a good example, when a run by depositors on a regional bank in California, the Silicon Valley Bank (SVB), triggered a sharp reversal in the upward trend in bond yields and a precipitous drop in stock prices over just a few trading sessions.
Our year began well enough, with our fixed income arbitrage strategies performing very well. Our other strategies were generally performing as expected, apart from a few developments in M&A transactions, which are discussed below.