I want to see more details about it, but I don't think this is a bailout like we've seen in the past.
They're not bailing out the business per-se... but will be interesting to see what the terms are.
The bank holds a bunch of bonds, and if you hold those to maturity you get all of the capital back... you're just missing out on the additional 2-3% APR since rates are steadily climbing. But you're not losing on principal.
But how much would you pay today for the principal of $1M which you would get full back in 2050?
Anyone taking on SVB's assets are more interested in their customer base and the services they can offer the successful batch of startups.
So whatever customer acquisition usually cost, plus some.
Going to be interesting to see how this plays out as a whole though with the continued rate hikes... this isn't the end of the story, and that's the real issue.
