Silicon Valley Bank (SVB) Forced to Realign Investment Portfolio
Shares of SVB Financial Group (NASDAQ: SIVB), the bank's parent, were halted by officials on the Nasdaq Friday afternoon after it was forced to sell securities to realign its portfolio in response to rising losses.
What happened: The parent of Silicon Valley Bank (SVB) late Wednesday said that it had to unload a large portion of its securities portfolio in order to meet its capital requirements, just as losses in its investment portfolios have risen.
According to its most recent financial report, only 0.41% of the $13.1 billion portfolio was invested in Silicon Valley Bank stock as of Wednesday. Table of the largest financial ETFs. Active investors have been looking for the right combination of value and risk to increase their returns in the stock market.
Silicon Valley Bank (whose shares trade as SVB Financial Group) specialises in venture capital funding. In fact, it apparently does business with over 70% of venture capital-backed companies in the US.
It is the first FDIC-insured institution to fail due to a liquidity crisis in the current market environment. Its investment portfolio is less than 15% of total bank assets and it is experiencing significant losses due to market volatility.
Due to these losses and the bank's need to meet its capital requirements, shares of SVB Financial were halted by officials on the Nasdaq Friday morning pending the sale of its securities portfolio.
Silicon Valley Bank is heavily focused on startup firms. The 40-year-old company was forced into a fire sale of its securities on Wednesday due to mounting losses in its investments.
SANTA CLARA, Calif., March 8, 2023 /PRNewswire/ -- SVB Financial Group (NASDAQ: SIVB) today announced that it had successfully completed the sale of substantially of its available for sale securities portfolio.
First Silvergate Capital Corp., now an old-fashioned run on venture capital bank SVB Financial Group. These are hard times for the tech sector, and it appears Silicon Valley Bank is no exception.
Extracted Keywords: SVB Financial Group, Silicon Valley Bank, securities portfolio, losses, investments, tech sector, capital requirements, venture capital funding, FDIC-insured institution, fire sale, Silvergate Capital Corp.
Extracted Tickers: SIVB
Extracted Anonymous Image Description: A close up view of a chart displaying a financial investment portfolio.