Tweet by Genevieve Roch-Decter, CFA @GRDecter

Silicon Valley Bank's Troubling Funding Situation

🧵 The TL;DR

Silicon Valley Bank recently revealed a funding situation that is likely to have far-reaching consequences. They funded long-dated fixed-rate assets with variable-rate customer deposits in a rising interest rate environment, creating a toxic mix of assets and liabilities. Investors, banks, and regulators should all be monitoring this situation closely.