Quinnipiac's Global Asset Management Education (GAME) Forum is the world’s largest student-operated financial conference. During these events, attendees gain insights and learn financial best practices from world-renowned leaders. The 2023 GAME Forum took place on March 30-31, attracting over 1,300 attendees from 120 universities. During the conference, more than 100 speakers, 77 companies, and over 30 panels were presented, including “Outlook for Markets and Investment Strategies.”
Peter Spiegel, Financial Times US managing editor, hosted the panel, which centered on uncertainty around turmoil in the banking industry. The concerns revolve around the March 2023 failures of regional banks, namely Silicon Valley Bank (SVB) and Signature Bank.
In general, industry experts have concerns related to regional banks withstanding interest rate risk, the concentration of uninsured deposits (particularly at mid-sized banks), and the impact of high interest rates on lenders, with GAME Forum panelists expressing these same concerns about the resiliency of the commercial real estate sector. These issues are also related to the effects of volatility and instability on social media and online banking.
It is not only regional banks that industry experts are focused on, but also global financial institutions. For example, the Credit Suisse failure in Switzerland has caused many European agencies to reevaluate banking regulation and resolution processes.
One panelist, Cambridge Associates chief investment strategist Celia Dallas, stated that the fact that policymakers and companies addressed the banking crisis quickly was encouraging. She referenced the Federal Deposit Insurance Corporation's quick response in honoring the SVB and Signature Bank deposits, and UBS buying Credit Suisse. Dallas expects to see more regulation of regional banks.
Actions taken to mitigate the crisis included expanding deposit protections to reduce the flight to larger banks. For example, a targeted deposit insurance coverage system might offer higher or even unlimited coverage for businesses. However, achieving a consensus on who will bear the cost of this coverage could take a lot of work.
As part of the GAME Forum panel, JP Morgan Asset Management chief global strategist David Kelly criticized the Federal Reserve for raising interest rates when inflation numbers showed a decline. According to Kelly, raising rates was the worst way to slow down the economy because it adversely impacted the housing market and reduced investment.
According to senior investment manager and global head of investments at Aberdeen Standard Investments Darren Wolf, raising rates also impacted corporate profits. Wolf stated that company executives might see a different level of equity returns than they had in the past decade.
Some also talked about how these bank failures figure into geopolitical risks, for example, the war in Ukraine and the threat of a Chinese invasion of Taiwan. The chief investment officer for the Rockefeller Global Family Office, Jimmy Chang, stated that many critical minerals needed for electric cars and clean energy are in problematic regions. Lithium, copper, and cobalt are minerals often mined in unstable countries where companies might avoid engaging in business. Chang also raised questions about the United States needing to become more self-reliant in sourcing semiconductor materials.
Quinnipiac's GAME Forums began in 2011 with 900 people, primarily students, faculty, alumni, and business professionals in attendance. Today, the forum has grown considerably to include leading financial services companies that host keynote panels and workshops and serve as judges in the annual student-managed portfolio competition.
While everyone gains something from attending this conference, students gain new perspectives from other students (national and international) and panelists, and they also profit from learning about world events.
