Janus Henderson Quick view: How will SVB's demise impact technology stocks?

Portfolio Manager Richard Clode discusses the collapse of SVB and the likely implications for the technology sector.

Richard Clode, Portfolio Manager at Janus Henderson Investors, said:

  • US commercial bank SVB, which relied heavily on private equity/venture capital and crypto deposits, collapsed when the Fed’s aggressive rate hiking led to significant falls in the value of its assets, which were mainly longer-term debt derivatives, such as MBS.
  • Listed tech companies are likely to be less impacted by the SVB fallout compared to private companies, some of which held large parts of their funding at SVB.
  • We are monitoring the impact of SVB’s large exposure to solar financing and continue to believe publicly-listed technology companies have more attractive valuations than their private peers.

For more details, please refer to the full article here.