SVB episode is a big blow to IT sector

[koyya_arya]

1 minute ago, 8pm said:

 💎 value andariki teliyadu anna.

vadileyyi Ee ignorant janalani 

@Bhai ga veerigadini bagane minguthunavu ga 

[Netflixmovieguz]

11 minutes ago, veerigadu said:

Regardless Powell thatha inko 2% penchalsindheee antunnaduuu interest rates. 

Powell thatha 2-3 months pausee sesssi analyze seeeyyaalleemmo. Lot of cash in circulation 

[Netflixmovieguz]

13 minutes ago, JaiBalayyaaa said:

Tuesday incoming, will be higher than expected antunnaru

going to trigger panic and loose confidence 

[Scurvy]

What happend to SPACs which were introduced during covid times . All fasak?

[hyperbole]

10 hours ago, Android_Halwa said:

What exactly led to this wealth wipe out at SVB ? Funding to start ups ?

Most people don’t understand what is happening. Back in 2021 the CFO plowed a ton of their free cash flow into bonds(mortgage mostly) which is typical of banks to match their assets and liabilities with similar interest paying maturities. The thing is while banks like Wells Fargo and JP Morgan do this for 30% of their portfolios SVB did 60%. Many institutional investors who hold most of SVB stock were concerned about this but were repeatedly told by the CEO that its fine and that they can just hold to maturity and not realize the loss. However 2 days ago he suddenly announced a stock sale to bolster their balance sheet and this has investors rightfully rip that he’s been lying to them.

Directionally. The stock sale is to increase the liquidity of the bank without having to sell their bonds at a loss and then they sold before maturity realizing $1.8 billion loss($22 billion securities sold). This is because the banks customers, VCs, are having to withdrawal deposits due to the tightening macroeconomic picture to keep their startups afloat. This has created fears of a bank run which will force SVB to sell a lot of their bonds for a massive loss.

[veerigadu]

27 minutes ago, hyperbole said:

Most people don’t understand what is happening. Back in 2021 the CFO plowed a ton of their free cash flow into bonds(mortgage mostly) which is typical of banks to match their assets and liabilities with similar interest paying maturities. The thing is while banks like Wells Fargo and JP Morgan do this for 30% of their portfolios SVB did 60%. Many institutional investors who hold most of SVB stock were concerned about this but were repeatedly told by the CEO that its fine and that they can just hold to maturity and not realize the loss. However 2 days ago he suddenly announced a stock sale to bolster their balance sheet and this has investors rightfully rip that he’s been lying to them.

Directionally. The stock sale is to increase the liquidity of the bank without having to sell their bonds at a loss and then they sold before maturity realizing $1.8 billion loss($22 billion securities sold). This is because the banks customers, VCs, are having to withdrawal deposits due to the tightening macroeconomic picture to keep their startups afloat. This has created fears of a bank run which will force SVB to sell a lot of their bonds for a massive loss.

I think this incident may call for a regulation. There should be an oversight to monitor all these bank portfolios.
 

This problem is attributed to mismanagement on SVBs behalf. They should have restricted themselves to 30%.

[JaiBalayyaaa]

10 hours ago, veerigadu said:

I’m on h1 bro. 

Bro, your wife is American no? 

[Gaali_Gottam_Govinda]

Ante maa dallaspuram and Austinpuram lo East facing homes ki demand tagginatte naa???

 

Been telling this..... that this is 2008 style event for Desi batch who bought $1M plus homes and Teslas in 2020-2021.

2008 started in Wallst. 2023 will take down Silicon Valley and Tech sector. Majority of loss making Tech startups born under 0% cheap free money will be wiped out when this is all over. 

[Baangaruu]

Just now, Gaali_Gottam_Govinda said:

Ante maa dallaspuram and Austinpuram lo East facing homes ki demand tagginatte naa???

stop thinking buying houses in dallaspuram. banks started layoff next month jobs lost

[veerigadu]

7 minutes ago, JaiBalayyaaa said:

Bro, your wife is American no? 

Yeah bro. But inkaaa GC apply cheyyale. It’s been only 2 years since we got married. I didn’t marry her for the sake of GC.

Mana db prajanikammm inka gc thella pilla dhaggareee agipoyaruuu. jealous naaa kondissss. My wife is a manager at a big clinical laboratory here. She makes same money as I do. 

[JaiBalayyaaa]

1 hour ago, veerigadu said:

Yeah bro. But inkaaa GC apply cheyyale. It’s been only 2 years since we got married. I didn’t marry her for the sake of GC.

Mana db prajanikammm inka gc thella pilla dhaggareee agipoyaruuu. jealous naaa kondissss. My wife is a manager at a big clinical laboratory here. She makes same money as I do. 

Enduku GC ki apply cheyaledu 

[hyperbole]

1 hour ago, veerigadu said:

I think this incident may call for a regulation. There should be an oversight to monitor all these bank portfolios.
 

This problem is attributed to mismanagement on SVBs behalf. They should have restricted themselves to 30%.

Yeah,  A bigger bank will acquire them as they're in trouble. Shareholders andaru bend east inka and depositors will be saved.

Right now, they're not insolvent. The problem is that their investments are illiquid and they're experiencing a bank run(customers rushing to withdraw their money). They bought mortgage-backed securities that mature in 10-30 years but tech companies are spending more money (withdrawing) than SVB can attract (depositing). So they have to sell their investments at a loss in the secondary bond market to cover withdrawals.

A bigger bank can provide the liquidity but shareholders ki ram ram

[pandu123b]

https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html

[hyperbole]

5 minutes ago, pandu123b said:

https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html

That’s what happens when the bank is no longer in position to serve withdrawals or liquidity crunch.  It had happened with many banks in 2008 like WaMu, Wachovia and Countrywide. Putnalu panchinattu okka okka pedda bank okka bank ni inchindru 2008. Same now, FDIC will not run the bank it basically sells it penny on a dollar to a big bank. WaMu which held trillions of assests(mortgages and liabilities) got sold for a mere $1billion to Chase

[ramudu]

12 minutes ago, pandu123b said:

https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html

wow... just matter day days , from top 20 bank to shutdown ..... this company is part of S&P 500 list and collapsed just like that