The 2nd Biggest Bank Failure In American History: Silicon Valley Bank Is No More
The Breakdown
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Silicon Valley Bank and Silvergate
SVB sold 21 billion of their available for sale securities at a $1.8 billion loss and were raising another $2.25 billion in equity and debt. This is because investors can now purchase long-duration quote-unquote risk-free bonds from the Fed at a 2.5x higher yield. For Silvergate, that's obviously crypto and the concentration was extremely high, like 90% plus. For Silicon Valley Bank, it was tech more broadly. While it wasn't nearly as concentrated, there's no denying that SVB has historically been the bank for the tech industry.
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Transcript
