Abhay Bhat

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>In 2021 SVB saw deposits jumped from $61.76bn to $189.20bn – read free cash startups got to grow >to generate better yield they purchased a large amount, ~ $80bn! in mortgage backed securities (MBS) with customer deposits – Yes the same dreaded instrument that cause 2008 crash

On March 10, 2023

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>In 2021 SVB saw deposits jumped from $61.76bn to $189.20bn – read free cash startups got to grow
>to generate better yield they purchased a large amount, ~ $80bn! in mortgage backed securities (MBS) with customer deposits – Yes the same dreaded instrument that cause 2008 crash

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023

>97% of these MBS were 10+ year duration with average yield of 1.56% >with FED’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

On March 10, 2023

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>97% of these MBS were 10+ year duration with average yield of 1.56%
>with FED’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

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023

>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)

On March 10, 2023

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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)

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023

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 ‘2024 is going to be worst than 2023′

On March 10, 2023

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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 ‘2024 is going to be worst than 2023'

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023

>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?

On March 10, 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?

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023

https://t.co/nxpHNJWt3M

On March 10, 2023

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pic.twitter.com/nxpHNJWt3M

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023

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

On March 10, 2023

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

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023

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

On March 10, 2023

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

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 9, 2023

reuters.com/markets/us/ban…

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

On March 7, 2023

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

— Abhay 🇸🇬🇮🇳 (@Abhay08) March 7, 2023

ycombinator.com/launches/IBY-a…

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

On March 5, 2023

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they spent 36 billion dollars on this shit. look at my capitalists allocating resources efficiently pic.twitter.com/ZDeFN1ADOs

— Bes D. Marx🔻 (@BesDMarx) March 3, 2023