What Investors Need to Know About the Collapse of Silicon Valley Bank with Cullen Roche
Excess Returns
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SBB's Capital Losses Are More Than the Capital You're Carrying
SBB was technically marking these things to market, but they weren't realizing the losses on them. They realized a $2 billion capital loss in Q4 last year. And I think that was the point where a lot of analysts in the, especially like the venture capitalists started to look at it and say, wait a minute, your losses on your bonds are more than the capital you're actually carrying. It was this weird scenario where technically they weren't insolvent yet. But I think the sort of writing was on the wall there where it was like, well, if if your clients continue to burn cash at the rate they are,you're running pretty thin"
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