The SVB Asset Management Q1 2014 Economic Report provides an analysis of economic and market factors that impact global markets and business health. This edition focuses on the financial health of U.S. banks. We examined the strengthening of the U.S. Banks’ balance sheets since the financial crisis, but caution that an upward movement in interest rates may translate to unrealized losses for the banks.
Additional highlights of the report include:
• Domestic Section: Household Spending (pg. 8-9) – The rise in household net worth boosted spending and overall sentiment. Household worth continues to hit all-time highs.
• The Fed: Continued Tapering (pg. 16) – The Fed continues to taper but FOMC Chair Janet Yellen has stated that tapering is not on a set course.
• U.S. Banks: Balance Sheet (pg. 20-21) – Banks are preparing their balance sheets in a rising interest rate environment.
• Markets/Performance: Money Market Funds (pg. 24) – Money market fund assets are hitting a dip, while bond funds have become more appealing.
• Global Economy: Europe (pg. 34) – Differing global growth levels pose risk to GBP and downside risk for EUR.