its a situation created by the Fed in the name of fighting inflation, created during covid unlimited stimulus,
when interest rate was paying 1.5%, if you have a bond, then it really looks bad on you now, since the rate is paying you 4%. for a small investor, you really have no choice but to hold the bond till maturity till 2026 and keep your capital $1,000 and small 1.5% interests each year. but if you cannot blame yourself enough, then cut loss for $100 and get back your $900 capital and never to see any cent of your interest till 2026.
So in the case of svb, the depositors must withdraw and put their $$$ in Tbill to get their 4%
svb holdings the lower rates bonds is forced to cut a deep loss, to pay back!!!
it is a similar situation when the rates keep going up in the Fed, small banks are competing directly with the Fed and in the process, they go UNDER. LOL
all smaller banks are in similar situation, the RUN is on all of them