MM104: Silicon Valley Bank (SVB) contagion fears spark a global banking sell-off
Market Maker
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Why Tech Startups Aren't Investing, Right?
SVB bank has seen deposit withdrawals just as their offsetting kind of securities book has declined in value. Investors have stopped investing in tech startups, so there's less new deposits coming in. Businesses are very conscious of the rate of return they're getting on their deposits. And if your bank account isn't providing you with anything particularly meaningful, then the CFOs in these businesses will buy government bonds to generate a higher return on their cash.
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