Daily Brief Macro: Silicon Valley Bank: Some Observations on Contagion and more

In today’s briefing:

Silicon Valley Bank: Some Observations on Contagion, Moral Hazard, and Monetary Policy
The Week That Was in [email protected] – Sea Ltd’s Blindside Win, ROTI’s Freshly Baked, and Prodia
Our Oil Price Analysis // FED is Willing to Break the Market

Silicon Valley Bank: Some Observations on Contagion, Moral Hazard, and Monetary Policy

The (equity) risk premium for banks (SPDR S&P Bank ETF (KBE US)) will go up while bank profitability will go down. There will be questions about smaller bank regulations.
Startups and smaller tech funds will struggle, potentially resulting in a lower valuation of the entire technology space (iShares US Technology ETF (IYW US)).
Unless the Bank Term Funding Program does not solve the liquidity issues, the Federal Reserve must continue raising rates, forcing another standoff with markets (SPDR S&P 500 (SPY US)) .

The Week That Was in [email protected] is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
The past week saw insights on Sea Ltd (SE US) post spectacular results, and PT Nippon Indosari Corpindo (ROTI IJ), which also beat considerably, and on Prodia (PRDA IJ).
Last week also saw insights on Olam Group (OLG SP), Sabana Industrial REIT (SSREIT SP), Halcyon Agri (HACL SP), Oishi Group PCL (OISHI TB), and the Singapore Healthcare Sector.

According to S&P Global, the renewable output by the grid operator MISO averaged 333,012 GWh in Q4.
Despite Bonneville Power Administration’s (BPA) renewable output slipping 12% in Q4, it remained the footprint with the most renewable market share at 75.6% of its total fuel mix for Q4.
The latest ACP data shows that the total installed solar capacity in the US grew by 17% year on year, reaching 74.126 GW in Q4.

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