Mar 21, 2023

Why bond prices fall as interest rates go up

Patrick T. Fallon/AFP via Getty Images

Today, we'll examine why the Federal Reserve's rate hikes got financial companies like Silicon Valley Bank into trouble. Plus, consumers' confidence remains resilient despite drama in the banking industry.

Segments From this episode

Banks in Turmoil

How the Fed's rate hikes spelled trouble for banks like SVB

by Sabri Ben-Achour

Mar 21, 2023

Why bonds lose value when the Fed hikes interest rates and what that has to do with banks.

Silicon Valley Bank was among the financial institutions for which rising interest rates on bonds spelled trouble.

Patrick T. Fallon/AFP via Getty Images

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Rent hikes are finally easing — except for renters who can afford it the least

by Kristin Schwab

Mar 21, 2023

Rents at the bottom of the market, where supply is tighter relative to demand, have risen faster than those of higher-priced properties.

Rent price growth is stuck at around 8.5% for lower-priced renters, well above the increases in other segments of the market.

Brendan Smialowski/AFP via Getty Images

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One mom on what the end of additional SNAP benefits means for her family

by Samantha Fields

Mar 21, 2023

Millions of people have had their benefits cut by at least $95 a month, at a time when food prices are up almost 10%.

Mansie Meikle with her 4-year-old daughter.

Samantha Fields/Marketplace

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Banks in Turmoil

Consumer confidence is up despite current bank troubles — will it last?

by Savannah Peters

Mar 21, 2023

Consumers haven't seen much reason to hold back.

According to a recent report from Ipsos, consumers are slightly uncertain about the future of the economy, even though consumer spending hasn't eased in the face of high interest rates and prices.

Patrick T. Fallon/Getty Images

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Why Nestle lost $2.1 billion on this peanut allergy cure

by Kai Ryssdal and Livi Burdette

Mar 21, 2023

The Swiss grocery giant bought the maker of Palforzia as part of an effort to take Nestle into the profitable health and wellness space.

Nestle CEO Mark Schneider bought the maker of Palforzia, a peanut allergy cure, as part of a pivot toward the intersection of nutrition and pharmaceuticals.

Fabrice Coffrini/Getty Images

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Banks in Turmoil

Trying to explain the bank runs? The "takeconomy" might deserve some of the blame.

by Kai Ryssdal and Sean McHenry

Mar 21, 2023

Many factors led to Silicon Valley Bank’s collapse, but content creator Kyla Scanlon says "social media risk" accelerated the slide.

Credit Suisse Chair Axel Lehmann blamed his bank's failure partly on a "social media storm." Content creator Kyla Scanlon highlights the role of social media in the instability that has jolted global finance.

Fabrice Coffrini/AFP via Getty Images

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Music from the episode

Kick, Push Lupe Fiasco

Bustling Freddie Joachim

Suddenly Junip

What You Need KAYTRANADA

You Got Me The Roots

Drew Barrymore SZA

Sakura Trees Saib

The team

Nancy Farghalli Executive Producer

Maria Hollenhorst Producer II

Andie Corban Producer I

Sarah Leeson Producer I

Sean McHenry Director & Associate Producer II

Richard Cunningham Associate Producer I

Dylan Miettinen Associate Digital Producer

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