plunged 60% on Thursday after the company completed a $21 billion firesale of its bond portfolio, which led to a loss of $1.8 billion and spurred plans to raise more capital from investors.
Also hurting SVB Financial is the fact that it mainly lends to venture capital and private tech companies that often rely on the IPO market to cash in their equity stakes and raise money that is often held at the bank, helping boost its deposits. "We are taking these actions because we expect continued higher interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses," SVB Financial said.
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