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Loaning money to a startup in this economy is far from risk free. Companies can go bust regardless of getting a part of their cash back
by beberlei 4y ago
Loaning money to a startup in this economy is far from risk free. Companies can go bust regardless of getting a part of their cash back
- mcherm 4y agoLoaning money to a risky borrower can be practically risk free if the borrower provides collateral. And the deposits in SVB are an excellent example of collateral. They are illiquid, but the funds are being held by the FDIC, which is highly reliable about (eventually) paying out (some portion, not necessarily the full amount).