I'm a 20 year Silicon Valley veteran now living in London. The subsequent blow up of SVB-UK will have a sizeable impact on tech companies over here also. It was clear last Thursday the legal ring fence between SVB-US and UK would not de-risk the fact the underlying business models and investment choices around customer deposits were similar.
SVB management's decisions to heavily invest depositor money in low-coupon, long-term bonds at the same time the FED is aggressively hiking is inexplicable, but this is a broader banking risk that will now come into focus soon.
I'm a 20 year Silicon Valley veteran now living in London. The subsequent blow up of SVB-UK will have a sizeable impact on tech companies over here also. It was clear last Thursday the legal ring fence between SVB-US and UK would not de-risk the fact the underlying business models and investment choices around customer deposits were similar.
SVB management's decisions to heavily invest depositor money in low-coupon, long-term bonds at the same time the FED is aggressively hiking is inexplicable, but this is a broader banking risk that will now come into focus soon.