March 11 (Reuters) – Hedge funds are providing to purchase startup deposits stranded at Silicon Valley Financial institution (SVB) for as little as 60 cents on the greenback, Semafor reported on Saturday, citing individuals aware of the matter.
Bids vary from 60 to 80 cents on the greenback, the report mentioned including that the vary displays expectations for a way a lot of the uninsured deposits will probably be ultimately recovered as soon as the financial institution’s property are offered or wound down.
Corporations like Oaktree that are recognized for investing in distressed debt are reaching out to startups after SVB’s seizure by the Federal Deposit Insurance coverage Corp (FDIC), the report mentioned.
Merchants from funding agency Jefferies are additionally contacting startup founders with cash caught on the financial institution, providing to purchase their deposit claims at a reduction, The Info reported individually.
Jefferies is providing at the very least 70 cents on the greenback for deposit claims, the report mentioned, citing a number of individuals with direct data of the matter.
Newest Updates
View 2 extra tales
Oaktree declined to touch upon the reviews. Jefferies couldn’t be instantly reached for remark.
Silicon Valley Financial institution imploded after depositors, involved concerning the lender’s monetary well being, rushed to withdraw their deposits. The frenetic two-day run on the financial institution blindsided observers and shocked markets, wiping out greater than $100 billion in market worth for U.S. banks.
Reporting by Kanjyik Ghosh in Bengaluru; Extra reporting by Akanksha Khushi; enhancing by Grant McCool
: .
