DM Commentary on US Bank Failure – March 2023

Slowly, then all at once – At the end of last week, the 16th largest bank in the US, Silicon Valley Bank, was shut down by regulators when it became clear that it wouldn’t be able to stem a run on deposits. Rumors had been swirling for some time that SVB was headed toward (if not already in) violation of its regulatory capital requirements, which was precipitated by a significant duration mismatch between its liability book – i.e. customer deposits – and its asset base, represented primarily by mortgages purchased near the top of the fixed income market.

Click here to read more:  DM Commentary – US Banking Update – Mar 2023