Fixed Income Forum,NEWS ROOM

Financial Tremors: U.S. Banking Industry Facing Increased Risk in Aftermath of Silicon Valley Bank’s Collapse

By Solve Fixed Income

The Banking sector has been feeling the effects of the sudden collapse of Silicon Valley Bank, the 18th largest bank in the country. Solve’s Fixed Income market data shows how different tiers of banks in the U.S. have been affected (Figures. 1-3).

Yields for bank issued debt, which had been trending lower earlier in the year, saw an uptick in February until the collapse of Silicon Valley Back. Since last Thursday, most mid-tier banks have seen an upturn but have since reverted to their prior levels. However, Silicon Valley Bank debt yields skyrocketed in lieu of the diminishing trading value (Figure 1).

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