SVB’s failure was due to the same trigger but opposite impact. Banks in the US have to hold a percentage of their deposits in something safe and liquid. SVB m

SVB’s failure was due to the same trigger but opposite impact. Banks in the US have to hold a percentage of their deposits in something safe and liquid. SVB made a big bet on low interest rates, buying a lot of government debt (safest available), but when interest rates went up the value of those bonds went down ( who’d buy one that paid low interest rate when higher was on offer?).