Under typical operating circumstances, those unrealized losses are manageable because SVB can just hold the Treasuries to maturity and cash out without recognizing any real loss. Consequently, SVB has been sitting on massive unrealized losses in its bond portfolio. Treasuries have since lost significant value. Given the Fed’s rapid rate-hiking cycle, U.S. So, in 2020 and ‘21, SVB bought a bunch of U.S. And due to regulations put in place after 2008, SVB had to back up all those deposits with high-quality assets, which mostly comprise U.S. The bank saw rapid growth in deposits amid the tech boom of 2020 and ‘21. We’ll delve into these issues and explore what they mean for the future of the markets. Rather, the run on SVB was a symptom of deeper issues – namely, two unique problems that arose from SVB’s very niche, exclusive focus on the startup tech sector. SVB’s failure was caused by a classic bank run, but this alone is not enough to bring down a bank, especially one as prestigious in technology as SVB. This week, we’ll be discussing the elephant in the room – the recent collapse of Silicon Valley Bank (SVB) and its implications for the markets. ![]() Welcome, folks, to another episode of the Hypergrowth Investing podcast !
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