Silicon Valley Bailout
Patrick Boyle On Finance
00:00
What Happened to Silicon Valley Bank?
Silicon Valley Bank had a very large amount of bonds in their portfolio classified as hold to maturity. The bank was not hedging risk at the time when rates were rising and when there was a huge tech selloff which would have impacted their clients. 89% of their funding came from deposits which is very high for a bank. Most of their depositors were venture capital backed startups which are mostly high growth loss making businesses.
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