(New York = Yonhap Infomax) Correspondent Jeong Seon-young = MarketWatch reported on the 10th (local time) that the price of 10-year BBB-rated bonds of parent company SVB Financial fell to 31 cents per dollar in the followingmath of Silicon Valley Bank (SVB) bankruptcy.
SVB announced that startup customers sold all available-for-sale securities (AFS) to respond to deposit withdrawals, resulting in a loss of $1.8 billion. so I closed the door
The price of SVB Financial’s bonds fell further even following the Federal Deposit Insurance Corporation (FDIC) intervened.
According to the FDIC, Silicon Valley Bank’s total assets were estimated at $209 billion as of December 31 last year, with deposits estimated at regarding $175.4 billion.
According to BondClick, SVB Financial’s 4.57% bond due in April 2033 fell to 31 cents per dollar on that day.
The price of this bond was 90 cents a week ago.
U.S. corporate bonds priced below 70 cents per dollar are generally considered bad debt.
syjung@yna.co.kr
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This article was served at 07:03, 2 hours earlier on the Infomax financial information terminal.
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