Analysis-Californian tech bank SVB sows global fear about rising cost of money

Published by
Reuters UK

By Naomi Rovnick and Mehnaz Yasmin LONDON (Reuters) -For months, investors had shrugged off the threat of rising interest rates. That changed this week. U.S. tech specialists Silicon Valley Bank’s failed scramble for fresh capital, after losing $1.8 billion selling a package of bonds to meet depositor demands for cash, sparked a global rout in bank stocks – and a rethink. In SVB’s case, venture capital clients, unable to raise cash elsewhere, pulled money from the bank, forcing its hasty sale of bonds at a loss. While the SVB case may be exceptional, banks everywhere face similar risks. It’s a…

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