Akshay Vegesna

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on the atlas — 3

Of course those bonds turned out to be risky, too, since interest rates went up, the market value of the bonds declined, the bank became insolvent on a mark-to-market basis, depositors noticed, and there was a run on the bank. About $42 billion of deposits fled on SVB’s worst day, Thursday, March 9, leaving the bank with “a negative cash balance of approximately $958 million”; it closed the next day. Fine. But SVB had invested about $120 billion in high-quality liquid bonds, and even after rates went up and the bonds lost value, they were probably still worth about $100 billion. But losing $42…
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