After the brilliant start to the new year, the mood on the capital markets had clouded over again more clearly in March. The US interest rate hikes finally claimed their first victims.

After all, last year’s rate hike was the fastest and largest in percentage terms in U.S. economic history. As in the last financial crisis, the banking crisis began in the U.S. (Silicon Valley Bank) and finally caught one of the most renowned banks in Switzerland (Credit Suisse) in Europe. Similar to the financial crisis, however, people reacted quickly according to the motto: losses are socialized by the state and profits remain private. Central banks provided the capital markets with ample liquidity, which led to a stabilization of the stock markets at the end of the month. EuroStoxx 50 and S&P 500 gained 2.01% and 3.67% respectively in March.

However, one consequence of the crisis is likely to be that banks will be more cautious with their liquidity and lend less. A factor that may make a U.S. recession more likely.

Uncertainty in the banking sector created plenty of volatility in the capital markets, from which the Premium Income fund benefited significantly, gaining +1.57%. Year-to-date performance is +3.72%. The losses from the previous year have thus been recovered. The PutWrite strategy and the bond portfolio achieved the biggest gains. However, the long vol component also posted a gain at the end of the month, despite the volatilities falling again. Positions from the Nasdaq 100 had a supporting effect.