Some startups are converting their cash with Silicon Valley Bank into treasury bills, bonds and money market funds amid concerns over the financial stability of the firm.
(Bloomberg) — Some startups are converting their cash with Silicon Valley Bank into treasury bills, bonds and money market funds amid concerns over the financial stability of the firm.
Several venture capital funds are advising portfolio companies to park their deposits in SVB in treasuries to wait out the storm, according to people familiar with the discussions, asking not to be identified because the information isn’t public. Some companies are trying to use the bank’s website to do so, they said.
Silicon Valley Bank markets a product known as SVB Cash Sweep on its website that allows customers to move idle cash into money market funds “carefully researched” by the bank. The site lists BlackRock and Morgan Stanley as fund managers that the bank’s customers can choose from.
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