Скачать или смотреть Silicon Valley Bank fall caused a ripple effect

On Thursday, shares in Silicon Valley Bank (SVB), a key lender to technology start-ups, plunged after it announced plans to shore up its finances. This had a knock-on effect, with the four largest US banks losing more than $50bn in market value. Bank shares in Asia and Europe fell sharply on Friday, with HSBC shares falling 5.6% and Barclay dropping 3.5%. Some start-ups who have money deposited have been advised to withdraw funds. Hannah Chelkowski, founder of Blank Ventures, a fund that invests in financial technology, told the BBC the situation was "wild". The bank is the most start-up friendly bank and supported start-ups so much through Covid.
SVB is a US venture-backed technology and healthcare company that listed on stock markets last year. In the wider market, there were concerns about the value of bonds held by banks as rising interest rates made those bonds less valuable. Central banks around the world have sharply increased interest rates as they try to curb inflation. Banks tend to hold large portfolios of bonds and as a result are sitting on significant potential losses. If they have to sell the bonds they hold at a loss it could have an impact on their profits.

Ray Wang, founder and chief executive of Silicon Valley-based consultancy Constellation Research, said the ripple effect of the problems at SVB showed these sorts of events "often hint at vulnerabilities in the wider system". Russ Mould, investment director at AJ Bell, said the SVB situation is a reminder that many institutions are sitting on large unrealized losses on their fixed-income [bond] holdings.