Hedge Funds, Banks Offer to Buy Deposits as SVB Fails

Hedge funds and banks are swooping in to try and pick up deposits held by startups at failed Silicon Valley Bank at steep discounts, according to reports.

Oaktree is among hedge funds that have offered to buy the deposits, with bids ranging from 60 cents to 80 cents on the dollar, Semafor said, citing people familiar with the matter. The bids reflect a range of expectations for how much of the uninsured deposits will ultimately be recovered once the bank’s assets are sold or wound down, according to the report.