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Mar 10 • 5 tweets • 2 min read
"Silicon Valley Bank Faces Financial Crisis: Stock Plummets 60%"

What happened? [THREAD🧵]👇

1) What is Silicon Valley Bank?

SVB is a US based bank that focuses on meeting the unique requirements of startup companies in the technology & innovation domain.

#SiliconValley #SVB
2) What is causing the trouble for Silicon Valley Bank?

The main problem is that Bank deposits are shrinking because of 2 reasons:

i) Increased cash burn by clients(Startups)

ii) Drop in venture capital deposits in the bank

Hence, bank is facing the liquidity issue.
3) What has triggered the stock fall of 60%?

The management of SVB revealed their plan to raise $2.25 billion through a stock sale to ensure sufficient liquidity.
The confirmation of the announcement indicates that the bank is experiencing a shortage of cash, leading depositors to withdraw their funds from the institution.

Certain prominent funds have instructed their portfolio companies to withdraw their funds from the bank.
The federally insured limit in the US is $250,000, meaning that if the bank were to fail, any funds exceeding this amount may be at risk of being lost.

In India, the insured limit is INR 5 Lakh per Bank.

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More from @Abhishe27960014

Abhishek Profile picture
Mar 9
💸"Potential Benefits of Prepaying Loans: Adani Group Recently Paid 7000+ Cr Share-Backed Loan"

[THREAD🧵]👇

Mainly 2 Reasons:

1) Adani can avoid the possibility of margin calls on pledged shares and mitigate additional selling pressure in the market.

#AdaniGroups #Adani
Margin Call: When a company's shares go down below a preset value that can cover the bank's loan value, the bank will ask for more money or shares as a guarantee that the loan will be paid back.
If the business owner is unable to meet the bank's request for additional funds or collateral, the bank has the authority to sell the pledged shares on the stock market to secure repayment of the loan.

This can create a cycle of more selling.
Read 6 tweets
Abhishek Profile picture
Mar 9
🥤"Campa Cola Returns: Reliance Brings Back the Iconic Brand"

[THREAD🧵]👇

1) Campa Cola was a popular soft drink brand in India in the 1980s and 1990s.

It was owned by Pure Drinks Group, which was founded in 1977 by the Ramesh Chauhan family.

#Reliance #Campa #campacola
2) In 2000, the Indian government banned the production and sale of Campa Cola due to concerns about the use of pesticides in soft drinks.
3) Reliance Consumer Products Limited(RCPL) acquired Campa for INR 22 Cr from Pure Drinks Group.

4) The initial Campa portfolio will consist of Campa Cola, Campa Lemon, and Campa Orange.
Read 5 tweets
Abhishek Profile picture
Mar 9
🏦"Everything You Need to Know About AT1 Bonds"

Bonds are like loans that people can give to companies or governments.

[THREAD🧵]👇

1) What are AT1 Bonds?

AT1 bonds are a type of investment that banks can use to raise money when they need it.

#bonds #Banking #banknifty
2) How AT1 Bonds are different from traditional Bonds?

a) Higher Risk

AT1 bonds are considered to be high-risk investments as they are designed to absorb losses in the event of a bank's financial distress.
Interest Payments in AT1 Bonds

AT1 bonds often have non-cumulative coupons, which means that if the bank misses an interest payment, it is not obligated to make it up in the future.
Read 9 tweets
Abhishek Profile picture
Mar 8
"The Bond Paradox: Why Longer Term Bonds Yield Less than Short Term Bonds?"

Yield= Return of Investment on Bond

[THREAD🧵]👇

1) During this current period of uncertainty, investors may be willing to accept lower yields on safer longer-term bonds.

#Powell #TreasuryBills #Fed
This can increase demand for longer-term bonds.

When the demand for a bond increases, its price goes up, leading to investors buying bonds at a premium and ultimately resulting in a decrease in yield or return.
2) Central banks may increase short-term interest rates to control inflation or cool down an overheating economy.

Investors may opt for fixed deposits with banks as they offer a more attractive rate of return, causing a decline in demand for existing shorter-term bonds.
Read 4 tweets
Abhishek Profile picture
Mar 8
👭"Breaking Barriers and Shattering Glass Ceilings: The Top 3 Businesswomen to Know on International Women's Day"

[THREAD🧵]👇

1) Indra Nooyi

Nooyi served as the CEO of PepsiCo from 2006 to 2018.

#womenempowerment #InternationalWomensDay #WomensDay2023
Under Nooyi's leadership, PepsiCo's revenues grew from $35 B to $63.5 B, and the company's stock price increased by more than 80%.

Known for her excellent communication skills, she has been praised for her ability to articulate complex business strategies in simple terms.
2) Sheryl Sandberg

Sandberg was Vice President of Global Online Sales and Operations at Google before joining Facebook as Chief Operating Officer in 2008.

She is the author of the best-selling book "Lean In," which encourages women to pursue leadership positions.
Read 6 tweets
Abhishek Profile picture
Mar 7
📱"iPhone Maker Foxconn Announces Manufacturing Plant in Telangana"

Learn about 'Foxconn' in this [THREAD🧵]👇

1) What is Foxconn?

Foxconn, recognized as Hon Hai Precision Industry Co. Ltd., is a electronics manufacturer headquartered in Taiwan.

#Telangana #Apple
2) What is the connection between Foxconn and Apple?

Foxconn is one of Apple's largest manufacturing partners that produces a wide range of products including iPhones, iPads, MacBooks, and other Apple devices.
3) What types of products does Foxconn manufacture?

Mainly 4 types:

a) Smart Consumer Electronics: Smart Phones/Wearables

b) Cloud/Networking Products: Servers/Routers

c) Computing Products: Computers/Tablets

d) Components: Connectors/Electronic components
Read 6 tweets

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