How Interest Rates Helped Precipitate Silicon Valley Bank's Collapse (Video)

Video transcript

Simon Williams (00:05): In the past 18 months, interest rates have become increasingly topical and relevant to consumers, businesses and banks alike. As everyone grapples with what has been the fastest pace of interest rate hikes in modern history. This has been punctuated by headlines of the recent Silicon Valley Bank collapse, and in the Canadian market, we are seeing a move from all CDOR-based products, whether loans, derivatives, or structured finance instruments from CDOR, which is an interbank rate to a new risk-free rate that almost nobody has heard of called CORRA.

Darien Leung (00:06): Three of the four largest bank failures in US history have occurred in the past several months. Today, we're going to talk about Silicon Valley Bank in particular, the macroeconomic factors that led to the US bank failures and potential implications for Canada. My name is Darien Leung. I'm a partner in the debt finance group of Torys' New York office.