After a year of rate hikes, the cumulative decline in the value of fixed income assets on bank balance sheets helped trigger the failure of Silicon Valley Bank and sparked fear of contagion. Regulators moved quickly to contain the crisis with deposit guarantees followed by support for First Republic Bank from a consortium of large banks. The Fed maintained course fighting inflation with a quarter point rate hike while the market framed up a closer endpoint for monetary tightening, leading to gains in large cap equity and bonds.