The Memo by Howard Marks cover image

Lessons from Silicon Valley Bank

The Memo by Howard Marks

CHAPTER

The Risks of Investing in Financial Institutions

SVB's failure gives a chance to discuss another topic involving financial institutions. Alternative Tier 1 bonds, or AT-1s, have recently been in the news. In UBS's recent takeover rescue of Credit Suisse, shareholders received modest compensation. Investors who thought they were creditors got nothing.

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