An explainer on what is going on with Silicon Valley Bank:
- In 2021 SVB saw a mass influx in deposits, which jumped from $61.76bn at the end of 2019 to $189.20bn at the end of 2021.
- As deposits grew, SVB could not grow their loan book fast enough to generate the yield they wanted to see on this capital. As a result, they purchased a large amount (over $80bn!) in mortgage backed securities (MBS) with these deposits for their hold-to-maturity (HTM) portfolio.
- 97% of these MBS were 10+ year duration, with a weighted average yield of 1.56%.
- The issue is that as the Fed raised interest rates in 2022 and continued to do so through 2023, the value of SVB’s MBS plummeted. This is because investors can now purchase long-duration "risk-free" bonds from the Fed at a 2.5x higher yield.
- This is not a liquidity issue as long as SVB maintains their deposits, since these securities will pay out more than they cost eventually.
- However, yesterday afternoon, SVB announced that they had sold $21bn of their Available For Sale (AFS) securities at a $1.8bn loss, and were raising another $2.25bn in equity and debt. This came as a surprise to investors, who were under the impression that SVB had enough liquidity to avoid selling their AFS portfolio.
- In 2021 SVB saw a mass influx in deposits, which jumped from $61.76bn at the end of 2019 to $189.20bn at the end of 2021.
- As deposits grew, SVB could not grow their loan book fast enough to generate the yield they wanted to see on this capital. As a result, they purchased a large amount (over $80bn!) in mortgage backed securities (MBS) with these deposits for their hold-to-maturity (HTM) portfolio.
- 97% of these MBS were 10+ year duration, with a weighted average yield of 1.56%.
- The issue is that as the Fed raised interest rates in 2022 and continued to do so through 2023, the value of SVB’s MBS plummeted. This is because investors can now purchase long-duration "risk-free" bonds from the Fed at a 2.5x higher yield.
- This is not a liquidity issue as long as SVB maintains their deposits, since these securities will pay out more than they cost eventually.
- However, yesterday afternoon, SVB announced that they had sold $21bn of their Available For Sale (AFS) securities at a $1.8bn loss, and were raising another $2.25bn in equity and debt. This came as a surprise to investors, who were under the impression that SVB had enough liquidity to avoid selling their AFS portfolio.
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“We executed Louis, we can do it with Macron!”: Protesters in Paris burned Macron’s “effigy”
FOLLOW: @GeneralPatton17
FOLLOW: @GeneralPatton17
PRESIDENT TRUMP: THE FAR & AWAY LEADING REPUBLICAN CANDIDATE & FORMER PRESIDENT OF THE UNITED STATES OF AMERICA, WILL BE ARRESTED ON TUESDAY OF NEXT WEEK. PROTEST, TAKE OUR NATION BACK!
Q Drops: Couple of interesting deltas for Tuesday…
“Enjoy the show.” and “Do not fear.”
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Q Drops: Couple of interesting deltas for Tuesday…
“Enjoy the show.” and “Do not fear.”
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“Many pundits associated Trump’s message, which he put out over Truth Social, as a call to violence…” He’s never called for violence. Left does!
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FOLLOW: @GeneralPatton17
Media is too big
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Support our President, Flags Out
Fly the American Flag, Trump Flag, Let them hear and see us
Show them who the Majority Is
Flags on cars, trains, buses, overpasses, homes etc. Flags Everywhere
Take a pic of your flag posted all over Social Media
We are the majority
For Our President
For Our Country
FOLLOW: @GeneralPatton17
Fly the American Flag, Trump Flag, Let them hear and see us
Show them who the Majority Is
Flags on cars, trains, buses, overpasses, homes etc. Flags Everywhere
Take a pic of your flag posted all over Social Media
We are the majority
For Our President
For Our Country
FOLLOW: @GeneralPatton17
President Trump: Wow, look what was just found -A Letter from Cohen's Lawyer to the Federal Election Commission. This is totally exculpatory, and must end the Manhattan District Attorney's Witch Hunt, immediately. Cohen admits that he did it himself.
The D.A. should get on with prosecuting violent criminals, so people can walk down the sidewalks of New York without being murdered!
FOLLOW: @GeneralPatton17
The D.A. should get on with prosecuting violent criminals, so people can walk down the sidewalks of New York without being murdered!
FOLLOW: @GeneralPatton17
The whole President Trump arrest story doesn't add up
The alleged offence is past the New York statute of limitations.
So what purpose does this whole thing serve?
Set up a false flag?
Predictive programming for future arrests?
Distraction from failing narratives and/or bad news?
Attempt to harm Trumps unstoppable march back to the Presidency?
Appeasement for "Liberals" who were promised Trump would be arrested?
FOLLOW: @GeneralPatton17
The alleged offence is past the New York statute of limitations.
So what purpose does this whole thing serve?
Set up a false flag?
Predictive programming for future arrests?
Distraction from failing narratives and/or bad news?
Attempt to harm Trumps unstoppable march back to the Presidency?
Appeasement for "Liberals" who were promised Trump would be arrested?
FOLLOW: @GeneralPatton17
Donald Trump has been indicted.
"The felony indictment, filed under seal by the Manhattan district attorney’s office, will likely be announced in the coming days."
March 03.
Think Mirror.
March 30.
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"The felony indictment, filed under seal by the Manhattan district attorney’s office, will likely be announced in the coming days."
March 03.
Think Mirror.
March 30.
FOLLOW: @GeneralPatton17
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Election theft running rampant,
FBI & CIA is politically weaponized,
Joe / Hunter Biden sold America to China,
Our government / politicians helped them,
Trump is targeted for trying to save it,
Epstein / Maxwell pedo clients protected,
Our money - laundered,
Our children trafficked,
Fauci is a walking, hazardous Bioweapon,
Covid-19 vaccines are STILL killing people,
Fake News / Big Tech censorship is covering it ALL up.
At this point in Time / History, your blood is either boiling, or clotting.
Our nation needs its Leader back.
The one We, The People, voted for.
FOLLOW: @GeneralPatton17
FBI & CIA is politically weaponized,
Joe / Hunter Biden sold America to China,
Our government / politicians helped them,
Trump is targeted for trying to save it,
Epstein / Maxwell pedo clients protected,
Our money - laundered,
Our children trafficked,
Fauci is a walking, hazardous Bioweapon,
Covid-19 vaccines are STILL killing people,
Fake News / Big Tech censorship is covering it ALL up.
At this point in Time / History, your blood is either boiling, or clotting.
Our nation needs its Leader back.
The one We, The People, voted for.
FOLLOW: @GeneralPatton17
Really obvious Typo from President Trump. "Keaked" instead of Leaked.
We find a killbracket [K] in Q drop 144. Lots of info in this one.
The most dasting thing in Q drop 144 is that all of the letters in [kill brackets] spells
[US Risk This Week] 👀
Let's see what happens
FOLLOW: @GeneralPatton17
We find a killbracket [K] in Q drop 144. Lots of info in this one.
The most dasting thing in Q drop 144 is that all of the letters in [kill brackets] spells
[US Risk This Week] 👀
Let's see what happens
FOLLOW: @GeneralPatton17