Silicon Valley Bank, Swedish edition

The downfall of Silicon Valley Bank was driven by the bank buying long-dated bonds that lost value when interest rates increased. At least ons Swedish bank has done a similar ‘trade’, lost 81 billion SEK and will have to ask its owner for an equity capital injection. Which bank? Riksbanken (the Swedish central bank) that has been buying bonds before and during the pandemic.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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