SVB Financial Realigns Portfolio—and Blows Up the Banking Sector

SVB Financial Group


stock plummeted Thursday after it sold assets for a loss following a decline in deposits. The impact rippled through the banking sector, which many investors had assumed was largely insulated from recession worries and rising rates

SVB’s troubles came as the Silicon Valley-based lender was forced to sell securities to realign its portfolio in response to higher interest rates while it manages lower deposit levels from clients, many of which are in the venture capital arena and burning through cash.