Banks begun going bankrupt, Stable coins depegged.
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Look ma, the usual YouTube thumbnail where a guy is seen with his mouth open and lots of fire in the background.
Here's a pro take: this was the easiest trade since when UST collapsed.
Here's a pro take: this was the easiest trade since when UST collapsed.
Wow, and Signature Bank just outright closed by the US regulator. I think crypto is relatively safe now. I was afraid they would just open tomorrow with only $250K insured available to depositors with the rest coming much later, causing a lot of uncertainty. This might have crashed Circle with all the redemptions (and crashed Signature Bank for sure). I am quite sure Signature has / had trouble it was hiding away from the public.
I bought the dip at open, hope to have the week of my life when we open tomorrow. Today you had PacWest trading at its lowest level since IPO (-75% of COVID low) while insiders bought Thurday and Friday when the SVB crisis was unfolding and they thought they could get the deal of a lifetime. Sometimes the opportunities are too good I guess.
Trading was halted, then opened, then halted etc. Only after American lunch (NY lunchtime) that stopped. I didn't buy EXACTLY at open, I bought after I read that insiders had bought as otherwise it was a play too risky for me.
The insiders didn't do too well. You may do better but I don't know much about this bank.
https://www.marketwatch.com/story/p...t-some-stock-as-it-tumbled-last-week-d08ecb76
PacWest Bancorp insiders lost $900,000 after buying stock as it tumbled last week
https://www.marketwatch.com/story/p...t-some-stock-as-it-tumbled-last-week-d08ecb76
I think they never expected the bank to drop much lower, SVB risk is quite a bit overstated IF you are well-capitalized. PacWest did not experience rapid balance sheet growth over the last years, most of their clients are long-term (and those that are VCs, 33% of deposits approx.) are not going to rush to JPM, maybe move 1/3 or 1/2 of their money, management is steady︀ and has a background I like (large length of career within the same bank, no︁ red flags). It's a conservative bank that doesn't buy into bulls**t and is generally well︂ perceived by its customers, it has survived 2008, and it will certainly survive this storm-in-a-teacup︃ in my opinion. Small to mid-sized businesses will never get the support at JPM, C︄ or BAC they would receive at a bank like PacWest, and they know the conservative︅ approach they take, which is why they don't move their money.
They dropped this statement︆ to start-up clients:
“Given all the noise in the market surrounding SVB’s liquidity pressures, we︇ want to assure you PacWest is in a sound financial position and actively supporting new︈ and existing venture banking clients. We took measures during 2022 to get out in front︉ of macroeconomic headwinds impacting the banking industry and continue to maintain strong capital ratios with︊ a stable, diversified deposit base. We do not have the level of bond portfolio exposure︋ as SVB, nor the level of exposure to venture/tech which differentiates us from SVB’s pure-play︌ venture play (VB is less than 33% of PWB’s deposit base/7% of our loan mix︍ and our Community Bank & HOA deposits are extremely stable). I’m including some detail around︎ our investor and balance sheet highlights from Q4 below and would be happy to schedule️ a call for you to connect with our CFO if you have any remaining questions that aren’t answered below.”
I checked what they posted Friday in terms of financials, and it all checks out, there is zero-reason for me to think they will collapse, and I will gladly take this risk given the risk-reward ratio.
Of course always DYODD.
Absolutely amazing, the best play during the USDC collapse fear was selling USDC for BTC / ETH.
They dropped this statement︆ to start-up clients:
“Given all the noise in the market surrounding SVB’s liquidity pressures, we︇ want to assure you PacWest is in a sound financial position and actively supporting new︈ and existing venture banking clients. We took measures during 2022 to get out in front︉ of macroeconomic headwinds impacting the banking industry and continue to maintain strong capital ratios with︊ a stable, diversified deposit base. We do not have the level of bond portfolio exposure︋ as SVB, nor the level of exposure to venture/tech which differentiates us from SVB’s pure-play︌ venture play (VB is less than 33% of PWB’s deposit base/7% of our loan mix︍ and our Community Bank & HOA deposits are extremely stable). I’m including some detail around︎ our investor and balance sheet highlights from Q4 below and would be happy to schedule️ a call for you to connect with our CFO if you have any remaining questions that aren’t answered below.”
I checked what they posted Friday in terms of financials, and it all checks out, there is zero-reason for me to think they will collapse, and I will gladly take this risk given the risk-reward ratio.
Of course always DYODD.
Absolutely amazing, the best play during the USDC collapse fear was selling USDC for BTC / ETH.
holding some part of reserves in stablecoins makes sense for a guy in Argentina or Sri Lanka
for anybody with access to western banking system it's kind of like holding your wealth in your favorite chain coupons trusting a third party... we already have this and it doesn't work
for anybody with access to western banking system it's kind of like holding your wealth in your favorite chain coupons trusting a third party... we already have this and it doesn't work
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