First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
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First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
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Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#2The title is mine; given that this is an 8-K filing, there is no built-in title. First Republic Bank, a San Francisco regional bank that's seen its stock affected by the Silicon Valley Bank collapse and is often compared to SVB, filed this with the SEC today (Friday) to reassure investors (and clients) that its situation is different from SVB's.
Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#3I’m not super well informed about this space, but my understanding was that SVB’s issue wasn’t that its depositors were from the tech sector, but rather that it had put a ton of capital into investments that are significantly less valuable (on the open market today) now than they were a year ago due to increasing interest rates.
I’m curious how the tech sector matters here specifically?
Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#4I’m not super well informed about this space, but my understanding was that SVB’s issue wasn’t that its depositors were from the tech sector, but rather that it had put a ton of capital into investments that are significantly less valuable (on the open market today) now than they were a year ago due to increasing interest rates. I’m curious how the tech sector matters here specifically?
The investments were long term treasuries and mortgage backed securities, yielding about 1.6%?
As rates have increased, long duration treasuries and MBSes are now worth 20-30% less.
Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#5The fact that they filed a last minute report on a Friday night speaks volumes about the amount of withdrawals they must be experiencing.
This is about as strong as a signal they could put out to stop a possible run.
Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#6In general, if anyone wants to go through all the recent 8-K filings, this is what SEC EDGAR is for. Here's a link that'll bring up all recent 8-K filings by date and time, descending:
https://www.sec.gov/cgi-bin/browse-edgar?action=getcurrent&d...
In general, I would expect a ton of 8-Ks on Monday the 13th for companies to release information on their exposure to SIVB, particularly if their exposure is minor or non-existent.
Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#7I’m not super well informed about this space, but my understanding was that SVB’s issue wasn’t that its depositors were from the tech sector, but rather that it had put a ton of capital into investments that are significantly less valuable (on the open market today) now than they were a year ago due to increasing interest rates. I’m curious how the tech sector matters here specifically?
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Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#8Makes 'Tech' look like a hot potato no one wants a piece of. Fun times.
Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#9I’m not super well informed about this space, but my understanding was that SVB’s issue wasn’t that its depositors were from the tech sector, but rather that it had put a ton of capital into investments that are significantly less valuable (on the open market today) now than they were a year ago due to increasing interest rates. I’m curious how the tech sector matters here specifically?
Matt Levine reports that the reason they had to buy those low-yield investments that plummeted is because it’s tech-sector customers had too much money in the boom times. Too much deposits means they need to buy a lot of something, and in the boom times that was low-yield stuff.
Re: First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%
#10[deleted]