SVB invests $91 billion in deposits in long-term bonds such as U.S. Treasuries. These bonds were originally very safe, but then in order to curb inflation, the Federal Reserve violently raised interest rates one after another, causing U.S. bond yields to rise. The bonds in SVB's hands depreciated sharply and suffered serious losses.
Data from the Federal Deposit Insurance Corporation show that the U.S. banking industry has incurred $620 billion in unrealized losses on securities held due to rising interest rates. Second, deposits at the technology startups that SVB mainly serves are declining.
🇺🇸 Panic continues to spread, and three institutions including Coatue, USV, and Founder Collective recommend that companies withdraw funds from Silicon Valley Bank.
In any case, the early low point is definitely suitable for entering the market, so there is nothing to panic. It just depends on whether it can give everyone a good position to copy.
