What Happened With SI & SIVB?

And where there’s opportunity [View in browser]( BROUGHT TO YOU BY: Proprietary Data Insights Financial Pros Top Regional Stock Searches Last Month Rank Name Searches #1 Silvergate Capital Class A 702 #2 First Horizon 61 #3 Truist Financial 53 #4 Zions Bancorp 48 #5 U.S. Bancorp 45 #21 SVB Financial Group 17 #ad [Understand the Headlines That Dominate the Markets]( Brought to you by [Opportunistic Trader]( [Exclusive: Watch a True Market Wizard Trade]( Hi. I’m Larry’s Managing Editor, Andrew Miller. I just sent you an email about Larry’s trading demo and wanted to make sure you saw it. Because Larry is crushing the market so far in 2023. And he once went 20 years in a row… Without a single losing year. But he hasn’t done it using a “traditional” method. And now, for a limited time, he’s sharing a free over-the-shoulder “demo” of his strategy in action. It’s less than 10 seconds. [Watch it here](. Financial Services What Happened With SI & SIVB Today, we’re departing from our typical stock coverage to discuss the collapse of two prominent banks: Silvergate Capital (SI) and SVB Financial Group (SIVB). Both are considered regional banks, though Sl doesn’t really fall into that category. Their demise brought down lots of their peers, including PacWest Bancorp (PACW) and Zions Bancorp (ZION). We’ll explain what happened, where there’s risk, and most importantly, where there’s opportunity. In a Nutshell The same problem undid both institutions: bank runs. Banks take depositors’ money and either make loans or invest it in safe assets like U.S. Treasuries. If depositors need their money back, banks can liquidate their investments or borrow from the Fed as a lender of last resort. Silvergate Capital held money for crypto clients, while SVB held money for venture capitalists. Both invested their money in U.S. Treasury bonds. As interest rates rose, the price of those bonds dropped. For most banks, this isn’t a problem. They just hold the bonds until maturity, usually months or a few years out. But crypto and VC customers needed money now, forcing Silvergate and SVB to liquidate their bond holdings at huge losses. When it got bad enough, Silvergate closed itself, and regulators closed SVB. Don’t Worry About a Bank Run The vast majority of banks are fine. The Federal Deposit Insurance Corporation (FDIC) insures accounts up to $250,000 per depositor to shore up faith in the system. So regular folks with money at SVB and Silvergate aren’t likely to see their cash disappear. Even crypto and VC companies aren’t likely to see huge losses. Opportunities Abound Investors sold stocks with exposure to VC or crypto customers, like PACW. The sell-off creates opportunities in national and regional banks that have little or no exposure to either of these client bases. Some quality names trading at a discount with healthy dividends include: - KeyCorp (KEY): 8.4x price-to-earnings ratio, 5.0% dividend yield - Regions Financial (RF): 8.7x P/E, 3.7% dividend yield - Citizens Financial Group (CFG): 8.7x P/E, 4.6% dividend yield [Take Your Investments to the Next Level With The Alt]( We curate crypto, NFT, real estate, startup, art, commodities, hedge fund, and more alternative investment content that matters to you. [Click here to sign up]( Do Your Homework Look where each bank invests its money. Does it put most of it to work through loans, or is a significant amount in Treasuries? When you see something like this from SVB that shows it’s invested heavily in Treasuries when rates are rising… [Liquidity] Source: SVB financials (arrow added) …Run for the hills! mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D575605?utm_medium=ic-nl&utm_source=104070 News & Insights Just Spilled - [The Key to AI Tech]( - [Top 10 Surging Stocks]( - [Arches Made of Gold or Mold?]( - [SNAPped in Pieces]( mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D575605?utm_medium=ic-nl&utm_source=104070 [We want to hear from you! Let us know your thoughts by clicking here]( [Link]( # Follow us on: [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list]( Spill&email=TheSpill@news.investingchannel.com). Update your email preferences or unsubscribe [here](. Manage your subscriptions with our [preference center](. View our privacy policy [here](. 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