Welcome to the WSO weekly wrap-up, where I talk with my team about the five most

trending discussions in the Wall Street Oasis community. Enjoy. All right, everybody, welcome to

another episode of the weekly wrap-up. It is March 16th around noon. So let's start it off, Matt.

Great. Thanks, Pat. Interesting current events going on recently, guys. Not, not surprising at all

in the threads. We've been seeing stuff around Credit Suisse, SVB, so we'll lead with that one today.

I'm going to give a quick just summary on what's going on with SVB for anyone that's not

too familiar with the bank run and how this is going to affect the overall financial financial

services industry.

Sure.

So for those of you that were living in Iraq last week, or less living in Iraq, last week,

basically Friday there was kind of a bank run that had started on Silicon Valley Bank.

Short store, trying to simplify it, their risk management team didn't necessarily do a very good

job in terms of hedging their risk to interest rates.

So what happened is I think they had a lot of long duration bonds.

And so when you have a lot of long duration bonds. And so when

you have a lot of long duration bonds, like 10 years, theoretically it's a pretty risk-free asset,

but when interest rates go up as much as they did and as fast as they did, they do decline in

value. So they had a couple billion dollar loss there. And then on top of that, they announced a capital

raise. And I think the combination of those two things really started freaking people out.

And I think since the deposit base for Silicon Valley Bank is so concentrated, it's like VCs,

all in this area where I live right here in the Bay. And it's a lot of startups on a lot in the same area like word spread really fast that

there might potentially be some, some issues around liquidity.

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