SVB Financial: Blow Up Risk

Dec. 19, 2022 7:42 PM ETSVB Financial Group (SIVBQ)95 Comments
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CashFlow Hunter


  • 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.
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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

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CashFlow Hunter profile picture
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.

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