Hedge funds are providing to purchase startup deposits at Silicon Valley Bank (SVB) for as little as 60 cents on the greenback, Semafor reported on Saturday, citing folks aware of the matter.
Bids vary from 60 to 80 cents on the greenback, the report stated including that the vary displays expectations for a way a lot of the uninsured deposits shall be finally recovered as soon as the financial institution’s property are bought or wound down.
Firms like Oaktree that are recognized for investing in distressed debt are contacting startup companies after SVB’s
SIVB,
seizure by the Federal Deposit Insurance Corp (FDIC), the report stated.
Traders from funding financial institution Jefferies are additionally contacting startup founders with deposits on the financial institution, providing to purchase their deposit claims at a reduction, The Information reported individually.
Jefferies is providing not less than 70 cents on the greenback for deposit claims, the report stated, citing a number of folks with direct information of the matter.
Oaktree declined to touch upon the studies. Jefferies couldn’t be instantly reached for remark.
Silicon Valley Bank was taken over by the U.S. Federal Deposit Insurance Corporation on Friday after depositors, involved in regards to the lender’s monetary well being, rushed to withdraw their their deposits. The two-day run on the financial institution shocked markets, wiping out greater than $100 billion in market worth for U.S. banks.
See: Silicon Valley Bank branches closed by regulator in greatest financial institution failure since Washington Mutual
Source web site: www.marketwatch.com
