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SVB benefitted tremendously from the Silicon Valley landscape boom, but invested heavily in Treasury and mortgage-backed securities to earn a spread on these deposits. However, these securities had interest rate risk and would lose value on a mark-to-market basis if interest rates rose.
SVB, the 10th largest US bank, was shut down by regulators due to insolvency on Friday March 10, 2013. The bank had a classic mismatch in its assets and liabilities, including a significant amount of deposits from Silicon Valley start-ups and high-growth technology and healthcare companies.
2023 Quarter 2
Global equity markets (ACWI Index) rose by 6.2% in Q2 and gained 16.7% YTD through July 14, 2023, with US stocks leading the rally due to optimism in tech companies, decreased inflation, positive economic data, and the resolution of the regional banking crisis. International equities had a less impressive performance, while fixed-income markets experienced modest declines and hedge funds saw moderate gains in Q2.
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Asset-class weightings do not necessarily convey portfolios’ true underlying risk characteristics. Therefore, we believe Risk Buckets and Risk Budget Utilization are better frameworks to measure portfolio risk vs. expected return, and to better construct adaptable portfolios across various market environments.
Understand the key functions of Family Offices: which aspects are best suited to highly qualified third-party providers and which to dedicated staff. Some ways to think critically about directing and coordinating a family office network.
For those beginning to think about the sound management of wealth, possibly around an exit from a large investment, the following outlines some questions we
White paper on the methodology behind BCA’s 7-yr Capital Markets Assumptions. Updated as of October 2022, with respect to strategic asset class return forecasts.