Call us now:
This is a great article that explains why things weren’t looking good at Silicon Valley Bank, that even I can understand.
No CRO for 3 months, at a time when the bank was without a doubt going through the biggest credit and market risks it would have experienced in 10 years. SVBs exposure to bonds at a time when interest rates were going up was high, bond yields that fell as interest rates rose. With SBV holding $117 Billion of securities out of $211 Billion in assets.
Bond losses were bigger than the banks equity capital. As the bank had no CRO at the time there was no one standing oversight over the banks credit risk exposure.
Ted Dziekanowski
#siliconvalleybank #creditrisk #creditriskmanagement
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