2023 Silicon Valley Bank collapse due to long-term bond investments and rising interest rates.
The article examines the 2023 collapse of Silicon Valley Bank (SVB), attributing it largely to its decision to pursue higher yields through long-term bond investments. Initially, SVB leaders humorously pledged not to chase yield, but a decade later, they shifted strategies, leading to significant losses when interest rates rose in 2022. This miscalculation resulted in an inability to cover deposits, culminating in a bank run in spring 2023, as noted by former SVB insiders.
October 13, 2024
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