3 ms·
Source for this? All evidence show that their failure at least started with them owning a lot of "safe" bonds, whose value declined with increasing fed rates.
by lambic2 4y ago
Source for this? All evidence show that their failure at least started with them owning a lot of "safe" bonds, whose value declined with increasing fed rates.
- mbesto 4y agohttps://www.svb.com/landing-pages/venture-debt https://www.svb.com/landing-pages/venture-debt
- mbesto 4y agoTo elaborate further with hard numbers. See #2: https://www.linkedin.com/posts/rich-falk-wallace_silicon-valley-bank-unit-economics-clarify-activity-7040705652658208768-GO00/ https://www.linkedin.com/posts/rich-falk-wallace_silicon-val... #1: Mortgage backed securities: $82B (83% residential) #2: Direct loans: $74B (55% short term loans to VCs & PE) #3: Liquid assets: $55B