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In a related development, to reassure investors, UBS announced on March 23 that it would buy back bail-in bonds issued two days before the bank acquired Credit Suisse. Download Vblink App, Analyzing more closely, Ms. Hien said that SVB's investment portfolio accounts for about 50% of US government bonds and mortgage-backed papers with low yield. In the context of the US Federal Reserve (FED) continuously raising interest rates, SVB has to face a loss that exceeds its equity. On the other hand, most of SVB's deposits are focused on startups and hedge funds. Therefore, SVB fell into crisis when a series of customers made withdrawals.
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