It gets repeated over and over again because if SVB money is locked up for weeks/months while they unwind positions startups won’t be able to make payroll.
So they will use cash flow or sell assets. The biggest risk is large coordinated layoffs affecting the job market, but there are other ways the government can intervene to protect individuals if that gets too dire.
Depositors will get 50% this week, the bonds are already sold. The loan book is more… interesting.
I am very interested in how that toxic loan portfolio is valued.