- Silicon Valley Bank's parent is raising $2.25bn of capital through a share offering, a placement and a mandatory convertible sale.
- SVB liquidated nearly all of the securities it held available for sale at a 8-to-9-per-cent haircut.
- Moody's downgraded SVB's credit rating by one notch and its outlook to negative due to declining venture capital investment and high cash burn among its clients.
- SVB is also facing higher funding costs and a declining deposit base, putting pressure on its net interest margin.
- Silicon Valley Bank's profitability and share price are becoming casualties of rising US interest rates.
Silicon Valley Tank(s)
The parent of Silicon Valley Bank is raising more equity and investors do not seem super pumped
Alexandra Scaggs
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