Start-Up Deposits

According to reports, the US financial media Semafor quoted people familiar with the matter as reporting that hedge funds are proposing to purchase the start-up deposits of Silicon Valley Bank (SVB) at a price as low as 60% of the face value. After SVB was taken over by the Federal Deposit Insurance Corporation of the United States, Oaktree, a well-known non-performing debt investment company, began to lend a helping hand to startups. According to the report, this bid range reflects the expectation of how many uninsured deposits will eventually be recovered once the bank’s assets are sold or liquidated. According to the previous report of The Information, the traders of the investment bank Jeffrey are also contacting the founders of the start-up companies whose funds are trapped and proposing to purchase their deposit claims at a discount price. Hedge funds propose to purchase the startup deposits of Silicon Valley Bank at a discount Analysis based on this information:A recent report…