- Maintain OVERWEIGHT on Singapore banks with OCBC as top pick.
- The demise of Silicon Valley Bank (SVB) was caused by the untimely investment in treasury bonds and mortgage-backed securities at peak levels and panic caused by the shutdown of Silvergate Capital. We expect nerves to calm once investors realise that contagion from the three ill-fated banks did not spread to the broader economy.
- - Read this at SGinvestors.io -
3 regional banks in the US succumbed to bank runs last Friday:
Silvergate Capital
- Silvergate Capital (NYSE: SI) was described as the top bank for the crypto market. It helps institutional investors move funds into and out of crypto-trading platforms, such as FTX, Coinbase Global and Kraken. The collapse of FTX shocked the crypto market. Silvergate had to sell its holding of securities at a loss after crypto-related deposits plunged 68% in 4Q22. It laid off 40% of its staff in Jan 23.
- - Read this at SGinvestors.io -
Silicon Valley Bank (SVB)
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-03-17
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
