Key Points
A bond portfolio sale proved fatal for the US tech and startup-focused lender, potentially triggering a chain of events that led to its collapse.Here is all you need to know...
SVB Financial Group, the parent firm of Silicon Valley Bank, disclosed details about the bond portfolio sale that led to its sudden collapse...
Bad bond investments doomed SVB. The bond portfolio that SVB sold to Goldman Sachs on March 8 primarily consisted of US Treasuries and had a book value of $23.97 billion..
The bond portfolio transaction was carried out at negotiated prices and netted the bank $21.45 billion in proceeds, reported news agency Reuters..
It may be noted that Goldman Sachs purchase of the bond portfolio was handled by a division that was separate from the unit that handled SVBs stock sale plan, confirmed a source who spoke to Reuters...
