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SVB announced on Thursday that it would sell $2.25bn in common equity and preferred convertible stock to fill its funding hole. This forced SVB to recognize a $1.8bn loss, which it needed to fill through a capital raise.

The portfolio was yielding it an average 1.79%, far below the current 10-year Treasury yield of about 3.9%. To fund the redemptions, on Wednesday Silicon Valley Bank sold a $21bn bond portfolio consisting mostly of US Treasuries. This culminated in Silicon Valley Bank looking for ways this week to meet its customers’ withdrawals. Some Silicon Valley Bank clients face cash crunchĪs higher interest rates caused the market for initial public offerings to shut down for many startups and made private fundraising more costly, some Silicon Valley Bank clients started pulling money out to meet their liquidity needs. This weighed on technology startups – the primary clients of Silicon Valley Bank – because it made their investors more risk-averse. Investors have less appetite for risk when the money available to them becomes expensive due to the higher rates. American English Dictionary (2): S.The Federal Reserve has been raising interest rates from their record-low levels since last year in its bid to fight inflation. Collins English Dictionary: -s¹ Collins English Dictionary: -s² Collins English Dictionary: -s³ Collins English Dictionary: -s' Collins English Dictionary: -'s American English Dictionary (1): S¹ American English Dictionary (1): S² American English Dictionary (1): s¹ American English Dictionary (1): s² American English Dictionary (1): -'s¹ American English Dictionary (1): -'s² American English Dictionary (1): -'s³ American English Dictionary (1): -s American English Dictionary (1): -s' American English Dictionary (2): s¹ American English Dictionary (2): s² American English Dictionary (2): S American English Dictionary (2): S¹ American English Dictionary (2): S² American English Dictionary (2): s. Learner's Dictionary: S Learner's Dictionary: -s Learner's Dictionary: -'s Collins English Dictionary: s¹ Collins English Dictionary: s² Collins English Dictionary: S Collins English Dictionary: s.