Ex Bank Risk Quant. 7 figure investor:⛰⛏ ,🛢️,⛽️. All my opinions obviously, never any investment advice given. Husband | Father. 👉🏾Retweets≠Agreements
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Mar 13, 2023 • 16 tweets • 3 min read
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So many posts/tweets/articles about the $SIVB meltdown but no one is explaining/breaking it down for the masses to understand.
Firstly, Silicon Valley Bank Was The Largest Banking Failure Since The Global Financial Crisis In 2008.
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The bottom line of the collapse was due to poor risk-mgmt. Instead of just buying short-dated T-bills or depositing with the Federal Reserve they bought long-duration fixed-income securities. This caused an asset-liability mismatch —> liquidity issues —> bank run —> collapse