Silicon Valley Bank

Hedge funds have offered to purchase startup deposits trapped at Silicon Valley Bank (SVB) for as little as $0.60 per dollar, according to a report from Semafor.

The bids vary from 60 to 80 cents on the dollar, according to the newspaper, which adds that this range reflects predictions regarding how much of the uninsured deposits will be recovered if the bank’s assets are sold or liquidated.

According to the report, when the Federal Deposit Insurance Corporation (FDIC) seized SVB, firms like Oaktree that are recognized for investing in distressed debt are reaching out to startups.

The Information revealed separately that traders from the investment firm Jefferies are calling startup owners with money trapped at the bank and offering to purchase their deposit claims at a discount.

The story states that Jefferies is providing at least 70 cents on the dollar for deposit claims, citing numerous individuals with direct knowledge of the subject.

By admin