만기일치, boring but basic

 

 

블룸버그와 유대를 이어가야 하는 측면에서

이런 money story 읽다가

너무나 기초적인 이야기가 강조되어서

마침 cripto currency, 그리고 벤처/실리콘벤처 산업과 연결된 은행업

은행업은 기본적으로 부채를 일으키고, 이를 자산으로 운용하여

그 마진을 누리는데, basic overhead cost 통제를 통해 회사 이익을 남기는것

물론, 어려운 시절, 위기를 위한 reserve 쌓아야 할 것이고

그런데 이번에 Silvergate 파산하고

실리콘벤처쪽도그렇다해서 간단히 게재해 본다

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Same basic idea: Take a bunch of deposits from one industry, invest them in safe but long-dated stuff, and then rates go up, your assets lose value, and your concentrated depositor industry vanishes. But Silvergate’s depositors really vanished, and it is shutting down; Silicon Valley’s story is more “a slowdown in VC funding” and “cash burn at many of its clients.” There is still a lot of franchise value there, which is why it can plug the hole in its balance sheet by selling stock instead of by shutting down.

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Silvergate

You can, with hindsight, do some dumb math about Silvergate Capital Corp., the crypto-friendly bank that melted this month. At the end of September, various crypto companies had about $12 billion of deposits at Silvergate.[1] Silvergate’s interest expense on those deposits was $0.00 per year: Those were non-interest-bearing demand deposits; crypto firms kept their money at Silvergate for transactional and convenience reasons, not to earn interest, and they didn’t.[2] (We talked last week about Silvergate, and its Silvergate Exchange Network for crypto transactions.) Silvergate did have some other expenses; its noninterest expense (salaries, rent, etc.) for 2022 totaled about $123 million.

In late September 2022, one-month Treasury bills were yielding more than 2.5%. The dumb math is, you take the $12 billion of deposits, you buy $12 billion of bills, and you get paid $300 million a year in interest. You pay your $123 million of non-interest expense, your $0 of interest expense, you have like $177 million left over as profit. Your assets are super-safe and super-liquid; if any depositors ever want their money back you just sell a Treasury bill and give it to them. This is an easy life.