SVB’s epic two-day collapse has caused terror in financial markets and sent bonds into a frenzy we haven’t seen in 41 years.
The Treasury, FDIC, and Fed have now created a plan to backstop all US deposits at FDIC-insured banks. The risk of a GFC level collapse has fallen to basically zero.
But world-class banks that have nothing to do with SVB’s problems have also sold off, including three of the world’s custodial titans.
These are banks that are 134 to 239 years old, with A to AA-rated balance sheets, and 82nd to 95th percentile global risk management according to S&P.
All three offer Buffett-like 18+% annual return potential over the next few years from their 25% to 39% historical discounts.
If you want a safe 3+% yield and the banks likely most immune to this crisis, these three are it.
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