Chapter
Analyzing Silicon Valley Bank's Loan Portfolio
28:51 - 34:05 (05:14)
The majority of Silicon Valley Bank's loan portfolio consists of asset-backed loans, including prepayments on LP commitments. The discussion revolves around how the venture debt portfolio will perform in a distressed environment, while the real loss was due to the change in interest rates.
Clips
The 2008 financial crisis serves as an example of what could happen in the venture debt portfolio during a distressed environment.
28:51 - 31:50 (02:58)
Summary
The 2008 financial crisis serves as an example of what could happen in the venture debt portfolio during a distressed environment. With 70% of Silicon Valley Bank's loan portfolio being asset backed loans, what will happen to venture debt in the current economy?
ChapterAnalyzing Silicon Valley Bank's Loan Portfolio
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Venture capitalist Chamath Palihapitiya highlights the systemic risk caused by the rapid rise in interest rates for both the banking and investing systems, citing the losses incurred by Silicon Valley Bank as an example.
31:50 - 34:05 (02:15)
Summary
Venture capitalist Chamath Palihapitiya highlights the systemic risk caused by the rapid rise in interest rates for both the banking and investing systems, citing the losses incurred by Silicon Valley Bank as an example. Individuals holding cash must now demand higher interest rates to compete with treasuries, causing further impact on mortgage bonds and other long-term investments.