Stock erosion of over 60% for the Silicon Valley Bank puts its Venture Capital Clients in a spot of bother as $80 million wipes out

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The bank, on Wednesday, 8th March,2023 had launched a sale of its shares worth $1.75 billion to cover up shortfall of $1.8 bn

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The losses were sustained by the sale of a $21 billion loss making bonds that comprised mostly the binds of U.S. Treasuries

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The portfolio was grossly underperforming for quite sometime now as it yielded an average return of 1.79%

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The returns are numbered grossly below the current 10 year treasury bonds that have been yielding a return of about 3.9%

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The Silicon Valley Bank fiasco brings forth the concerns of the U.S treasury Bonds and the current risks associated with the entire sector

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Financial institutions like First Republic, a San Francisco based bank too tanked more than 16% recently

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Several top VC firms, including Coatue and Founders Fund, have suggested that they strongly consider pulling money out

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