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The Collapse of Silicon Valley Bank: The Start of Great Financial Crisis 2.0?

Mergers and Inquisitions

government bonds: In doing so, however, the bank and its “risk managers” made two key mistakes: Long-Term vs. Short-Term – Rather than putting these funds in shorter-term bonds that are less affected by interest rates , SVB invested mostly in longer-term, 10-year bonds whose prices drop significantly when interest rates rise.

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UBS and Credit Suisse: The Next Shoe to Drop in the Financial Crisis of 2023?

Mergers and Inquisitions

I explained the reasons for Silicon Valley Bank’s failure in last week’s article : incompetent risk management, massive losses on HTM securities, and a run on the bank that created the need to sell securities at a loss and get cash to cover the withdrawals. By contrast, Credit Suisse barely had any HTM securities. Klein & Co.

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