Investor here (trying to buy into SVB), but I don't currently own anything, nor do I have any current accounts with SVB.
Everything I can see about them is completely overblown. Short and sweet version of research so far:
- They had sold their bond portfolio for 1.8B loss (originally 21B, this is 8.5% loss)
- They decided to raise money to match that loss (news release on 3/8/23)
- Headlines are confusing people with "can't sell" referring to the 3/8 attempt at capital raise, but now people think SVB is trying to sell
- Their Total Equity is around 13B (last balance sheet) -- that means if they completely dissolved and paid off all debts they would still have 13B on the balance sheet. Market Cap EOD 3/9 was 6.5B -- half of their actual asset value
- If they go into cash insolvency and get bought out, they will likely have to sell those illiquid assets at a discount (let's estimate a 40% discount) - it's still worth 6.8B.
Y'all SVB has been through this before, both in .COM and and '08. Also, to be clear -- I do not own any stock (but I want to)
Everything I can see about them is completely overblown. Short and sweet version of research so far:
- They had sold their bond portfolio for 1.8B loss (originally 21B, this is 8.5% loss)
- They decided to raise money to match that loss (news release on 3/8/23)
- Headlines are confusing people with "can't sell" referring to the 3/8 attempt at capital raise, but now people think SVB is trying to sell
- Their Total Equity is around 13B (last balance sheet) -- that means if they completely dissolved and paid off all debts they would still have 13B on the balance sheet. Market Cap EOD 3/9 was 6.5B -- half of their actual asset value
- If they go into cash insolvency and get bought out, they will likely have to sell those illiquid assets at a discount (let's estimate a 40% discount) - it's still worth 6.8B.
Y'all SVB has been through this before, both in .COM and and '08. Also, to be clear -- I do not own any stock (but I want to)