This weekend Silicon Valley Bank (SVB) folded. The federal government transferred all assets under SVB to a bridge bank.
The 2023 interest rate hikes negatively impacted the value of SVB’s treasury bonds. This combined with the trends in the tech industry caused Moody to downgrade SVB. So, SVB attempted to raise money. And then SVB’s depositors made a run on the bank. SVB did not have enough liquid assets to cover the withdrawals so the Federal Government stepped in.
Some analyst continue to say that this is unique to SVB. They believe, or at least report, that no other banks are at risk. Well, the Federal Government doesn’t believe them. So, the federal government took over NY Signature Bank.
What does this mean for TX Real Estate? Well, the talk is that the Fed will halt it’s interest rate hikes until at least June. So, perhaps your buyers and investors have a short window to get in the market.