PODCAST | How have high interest rates affected financial markets?
PSG Wealth chief investment officer Adriaan Pask discusses the recent collapse of US banks and its impact on SA
The biggest banking failure since the 2008 global financial crisis shook financial markets in March 2023, after a few US banks collapsed.
What happened at these banks is not surprising, given the increasing interest rate environment. Higher rate cycles expose the weaknesses in business models and risk management practices.
In this podcast, Adriaan Pask, chief investment officer of PSG Wealth, explains some of the market vulnerabilities which have been exposed by rising interest rates.
Pask says though a few US banks have collapsed, the SA banking sector has displayed resilience and has been well insulated from the global fall.
And though there are talks of a looming recession,Pask says there lies an opportunity to get into investments that may have likely been too expensive before.
This article was sponsored by PSG Wealth.