#SVBCollapse #AramcoResults #USInflation

#Topic 1: Silicon Valley Bank Collapse

The Silicon Valley Bank, a bank that lends money majorly to the tech-companies collapsed last week marking the second largest bank failure in the history of the US. 

Why did it happen?

On Wednesday last week, The Silicon Valley Bank announced that it had sold all of its available for sale securities incurring a loss of close to $1.8 billion and that it would have to raise $2.25 billion dollars by issuing shares to shore up its balance sheet. This triggered a bank run and almost $42 billion being withdrawn by the end of the next day of announcing the sale. Continuous rate hikes had led to a significant decline in the bonds that were bought during the low interest rate environment. This in-turn led to them sitting on lots of unrealized losses.

What can we expect?

The bond...