Member Info for Sangijuelas1

Saying we are fine, no really, nothing to see here. All good thanks for asking. I have just got to take a call. Gimme a minute, will you?

https://sifted.eu/articles/silicon-valley-bank-uk-still-funding-loans-news/?utm_term=Autofeed&utm_campaign=content&utm_medium=social&utm_content=siftedaccounts&utm_source=Twitter#Echobox=1678471620

Most of the assets were mortgage backed securities. Not actual loans to start ups. Apparently the influx of cash they received was too much to invest so they just bought $80bn worth of MBS whose value is collapsing on a daily basis

So the SVB cap raise has fallen through and they are looking for a buyer

Looking at Daddy's posting history doesn't seem like someone to be taken seriously.

Just a trader

Apparently, others on the same call were not reassured when the CEO told them to "stay calm".

Sorry what I take from that is MV have been reassured, which I wouldn't be.

And most of the portfolio have exposure, which sounds like they have cash on deposit they are trying to pull.

Also, if SVB collapse where is future funding coming from.
I imagine they would still be on the hook for the loan in SVB bankruptcy. Could it get called in early?

A bit too much uncertainty for me.

SVB trading halted pending news

No but it's a possibility. The way I see it MV would have been introducing founders to SVB

Could be interesting if involves the likes of UK tech champions Graphcore and Paragraf

Wonder if BOE on the case for SVB UK?

If Fed rescue it, wouldn't cover UK deposits.

SVB down 67% pre market

Steph
The revolving credit facility is with SVB and JP Morgan.

There's no 4 bank consortium. MV have their cash on deposit with 4 banks. One of which is SVB.

They also have to hold 6 months worth of interest payments, which would be something like £6m, in an Interest Reserve account. That could also be held by SVB.

I have had concerns recently about the cash situation here and this doesn't help things one bit.

They rely on realising investments and that is not happening.

On the annual report SVB is one of 4 banks they hold cash on deposit with

It's all about what is on deposit with them for me.

MV and the portfolio companies.

The sector valuations are less of a concern for me today given our European focus.

I think most of the RCF has been drawn already. They may have taken the rest as per suggestion in this tweet from Lake Cornelia

"We have rarely seen a situation where buying a bank when it is down 40% on the day to be a good entry...these things can unwind far quicker than people realize. People with facilities with $SIVB may well call them / draw which would further stress liquidity. Just haircutting by 10% the value of the 21-22 growth of held loans and HTM securities alone would be a $5+ billion hit to book equity (which is ~$20 billion post these transactions). "

https://mobile.twitter.com/CorneliaLake/status/1633886003684360215

When Lehmann Holdings went bankrupt the European and UK subsidiaries all went into administration.

No parent to back them if they had their own issues

So would the UK subsidiary be ring fenced from the US problems.?

Yeah I have been slowly getting out of Freetrade and keep expecting the withdrawals to not arrive.

I think the shares would be safe as with custodian but it's the bit where they are in cash waiting to withdraw!

Trustpilot had or have a relationship with them