Part 3/12:
SVB, for instance, saw its deposits surge from around $70 to $90 billion in early 2020 to nearly $200 billion by the end of the first quarter of 2022. This rapid growth created a substantial pool of idle funds that needed to be invested. Most banks, including SVB, placed these funds into long-term securities, seeking higher yields than those available at the time—money market rates hovered around 0.5%, while the banks managed around 1.6%.