Igor Kutyaev
The first half of 2023 saw the beginning of a banking crisis that will have repercussions for years to come, which will lead to a period of consolidation within the banking industry as well as a rethink of
Why We May Be Only In The Early Stages Of A Banking Crisis
Summary
- Bank assets and liabilities are at an extreme duration mismatch, where balance sheets are filled with long-duration, low-yielding fixed-income securities and loans, while liabilities are shorter-term than previously anticipated.
- Significant issues persist within the banking sector concerning the quality of their balance sheets, which, in many cases, have deteriorated further due to rising interest rates and banks' decreased ability to generate profit.
- Higher rates aren't just impacting the liability/deposit side of bank balance sheets but the asset side as well. When interest rates rise, the market value of fixed income securities and loans decline.
Donald A. Steinbrugge, CFA – Managing Partner, Agecroft Partners
Don is Chairman of Agecroft Partners, a global consulting and third party marketing firm for hedge funds. Agecroft is in contact with over a thousand hedge fund investors on a monthly basis and devotes a significant amount of time performing due diligence on hedge fund managers. Don is a frequent guest on business television including Bloomberg Television, Fox Business News and Reuters Insider. In addition, he has been quoted in hundreds of articles relative to the hedge fund industry and has been selected as chairman of some of the most well known alternative investment conferences.
Highlighting Don’s 28 years of experience in the investment management industry is having been the head of sales for both one of the world’s largest hedge fund organizations and institutional investment management firms. Don was a founding principal of Andor Capital Management, which was formed when he and a number of his associates spun out of Pequot Capital Management. At Andor he was Head of Sales, Marketing, and Client Service and was a member of the firm’s Operating Committee. When he left Andor, the firm ranked as the 2nd largest hedge fund firm in the world. Previous to Pequot, Don was a Managing Director and Head of Institutional Sales for Merrill Lynch Investment Managers (now part of BlackRock). At that time Merrill ranked as the 3rd largest investment manager in the world. Previously, Don was Head of Institutional Sales for NationsBank (now Bank of America Capital Management).
Don is also a member of the Investment Committees for The City of Richmond Retirement System, The Science Museum of Virginia Endowment Fund and The Richmond Sports Backers Scholarship Fund. He is also a member of the Board of Directors of the Hedge Fund Association, Lewis Ginter Botanical Gardens and the University of Richmond’s Robins School of Business. In addition, he is a former 2 term Board of Directors member of The Richmond Ballet (The State Ballet of Virginia).