SVB Financial Group scrambled on Thursday to reassure its venture capital clients their money was safe after a capital raise led to its stock collapsing 60% and contributed to wiping out over $80 billion in value from bank shares.
Thursday's slump evaporated over $80 billion in stock market value from the 18 banks making up the S&P 500 banks indexIn a separate deal, SVB said private equity firm General Atlantic will buy $500 million worth of its shares.Natalie Trevithick, head of investment grade credit strategy at investment adviser Payden & Rygel, said the bank's bonds were not doing as poorly as the equity.
"We do not believe that SIVB is in a liquidity crisis," Wedbush analyst David Chiaverini said in a report, referring to the company's trading symbol. "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," Becker said.
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