SVB Financial: Blow Up Risk

Dec. 19, 2022 7:42 PM ETSVB Financial Group (SIVBQ)95 Comments
CashFlow Hunter profile picture
CashFlow Hunter
8.82K Followers

Summary

  • Potential losses in loan portfolio could severely impair book equity.
  • Unrealized losses in hold to maturity portfolio already equal to book equity.
  • Funding environment for start-ups will pressure deposit base adding even more pressure to the balance sheet.
Piggy bank in pieces

PM Images

The Core Business

SVB Financial Group (SIVB) is the holding company for Silicon Valley Bank. The company has carved out a niche for itself as a leading commercial bank servicing technology and life science, many of which are early stage. The company

This article was written by

CashFlow Hunter profile picture
8.82K Followers
Cash flow focused investor comfortable across the capital structure. Prefer to find undervalued steady cash flow generators on the long side and declining cash flow situations with unsustainable balance sheets on the short side.

Disclosure: I/we have a beneficial short position in the shares of SIVB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (95)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.