capital gap
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Goodbody analyst, stock broker: The market overreacted to the bank event in Silicon Valley
According to reports, John Cronin, an analyst at Goodbody, a stock broker, said, “Silicon Valley Bank is a unique example because it relies heavily on commercial deposit financing. The massive outflow of corporate deposits experienced by Silicon Valley Bank forces it to liquidate investment securities to make up for the capital gap, which is not the trend we see in British banks. I think the market has overreacted”. Interpretation of this information: In this statement, John Cronin, an analyst at Goodbody, is discussing Silicon Valley Bank and its reliance on…
