I know that they had to realize a lot of unrealized losses through the bond selling but I also think their lending practices also had a part in things right? I don't really think the companies were doing so great in a recession and it could have also contributed towards their cash reserves.
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In this situation, the lending practices werent a problem, at least now. This is a liquidity crisis.
You could be right, in the long run, bad lending could have been a problem for SVB. But at this time, it was liquidity which happens when long dated bonds are halved in value, restricting access in financial markets.
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