Systemic?

The big news in the past week in financial markets is the accident report on the demise of Silicon Valley Bank—SIVB—which was put into receivership by US regulators on Friday. This was a very quick death spiral. At the beginning of the week, the stock was trading at a cool 280 bucks, and now my assumption is that the equity is zero. You’ll read many versions of this story this week, but I’ll try to sketch the stuff that everyone seems to to agree on. I will then highlight some of the areas where analysts and commentators disagree, and where there should be scope to make, or lose, money. 

Do you want to read the rest? Click here for the PDF.

Sources linked:

Giang, Vivian (2023) - Silicon Valley Bank Collapse: What We Know, NY Times March 10 2023

Rubinstein, March (2023) - The demise of Silicon Valley Bank, Net Interest Substack

Whalen, Christopher (2023) - Who Killed Silicon Valley Bank?, The Institutional Risk Analyst

Forward Guidance podcast, with Jack Farley (2023) - Chris Whalen: The Fed is to blame for the collapse of Silicon Valley Bank.

Cochrane, John (2023) - Silicon Valley Bank Blinders, Blogger blogpost.