Stocks Neat
Moral hazard in the tech industry: the case of Silicon Valley Bank
In episode 16 of Stocks Neat, Co-Portfolio Manager Gareth Brown joins CIO Steve Johnson, all the way from London, to delve into the Silicon Valley Bank bankruptcy and the broader issues of regulation, moral hazard, and the importance of creative destruction for economic growth.
Steve and Gareth explore the issues of solvency and liquidity in the banking industry and the problem of duration mismatch caused by investing short-term deposits into long-term assets.
They discuss the importance of counterparty risk for investors and emphasise the need to consider where your money is, who owns the assets, whether there is a small probability that something can happen with dramatic consequences, and whether measures can be taken to mitigate these risks.
Show Notes:
- Steve's Livewire article on the topic - Why monetary madness needs to be banished for good
You can also find us on:
Twitter - @ForagerFunds
Facebook - Forager Funds Management
LinkedIn - Forager Funds Management
Instagram - Forager_Funds
For regular videos, investment insights, and fund updates, visit www.foragerfunds.com.
In episode 16 of Stocks Neat, Co-Portfolio Manager Gareth Brown joins CIO Steve Johnson, all the way from London, to delve into the Silicon Valley Bank bankruptcy and the broader issues of regulation, moral hazard, and the importance of creative destruction for economic growth.
Steve and Gareth explore the issues of solvency and liquidity in the banking industry and the problem of duration mismatch caused by investing short-term deposits into long-term assets.
They discuss the importance of counterparty risk for investors and emphasise the need to consider where your money is, who owns the assets, whether there is a small probability that something can happen with dramatic consequences, and whether measures can be taken to mitigate these risks.
Show Notes:
- Steve's Livewire article on the topic - Why monetary madness needs to be banished for good
You can also find us on:
Twitter - @ForagerFunds
Facebook - Forager Funds Management
LinkedIn - Forager Funds Management
Instagram - Forager_Funds
For regular videos, investment insights, and fund updates, visit www.foragerfunds.com.