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Author: Abhay Page 16 of 70

>97% of these MBS were 10+ year duration with average yield of 1.56% >with FEDโ€™s interest rate of ~4.5% and increasing in 2023 > customers with deposits who were earning little less than 1.56% (bank spread) can now purchase govt backed sec with >4.5% yield

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>This is not a liquidity issue as long as SVB maintains their deposits as they are earning ~1.56% on these deposits and the MBS has not gone bust (like in 2008)

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depositors would want to have better returns on their monies as they have to prep for longer runways with the last round with the constant narrative of โ€˜2024 is going to be worst than 2023′

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>yesterday SVB announced that they had sold $21bn of their Available For Sale (AFS) securities at a $1.8bn loss and raising another $2.25bn in equity and debt – which hints at liquidity of the bank if the depositors are not getting theie monies back, if MBS cannot be liquidated?

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https://t.co/nxpHNJWt3M

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Silvergate collapse has triggered a crypto bloodbath, with all the news around Binance, hope there is no contagion effect

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Banks tumble as SVB ignites capitalization fears | Reuters https://t.co/EamTgU565w

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reuters.com/markets/us/banโ€ฆ

Launch YC: AiFlow: LLMs for private equity diligence | Y Combinator, as โฆ@chamathโฉ called it the coca-colas are emerging https://t.co/j0etGNL4Ew

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ycombinator.com/launches/IBY-aโ€ฆ

RT @BesDMarx: they spent 36 billion dollars on this shit. look at my capitalists allocating resources efficiently https://t.co/ZDeFN1ADOs

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Startup Valuations & Liquidity

This week, I listened to two podcasts that made me think about the economics of early-stage businesses and how they are perceived by investors. It also shed light on how this perception impacts the founder and employees. I believe it’s important to first lay down the dots and then connect them in a way that provides a clear picture for an entrepreneur from an investor’s perspective.

I thought it would be good to lay down the dots first and then try to link them just enough so that when the jig-saw is put together although each piece may not make much sense but together will give a clear picture for an entrepreneur from the shoes of an investor.

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