The Blubber

Per CNBCTV18

Alecta, Sweden's biggest pension fund, has lost money on Silicon Valley Bank. The fund's initial investment was $609 million, but after the bank collapsed, it was worth just $279 million.

Aleca reportedly oversees assets worth over $104 billion, and in 2022, the fund decided to double its investment in Silicon Valley Bank. Per Bloomberg, this resulted in the fund's investment in SVB losing 54% of its value.

The head of communications of Alecta gave a statement to Bloomberg regarding how they weren't affected by the crash of SVB. It was stated that the fund didn't hold much compared to its total fund asset worth.

“The holding represents less than 1 percent of our assets and will not impact our solvency metrics,”

Here are some of Alecta's other investments.

• First Republic Bank - the fund is its fifth-largest shareholder
• Signature Bank - the fund is the sixth-largest owner

The fund increased its position with First Republic Bank towards the end of 2022. However, at the peak, Aleca's stake in SVB was reportedly worth $995.5 million, as per Bloomberg's chart.

Recently, First Republic bank dropped by 77% in share price, despite receiving more liquidity from the Federal Reserve and JPMorgan Chase. This resulted in its shares dropping from $62.59 to $19.00.

The bank raised $70 billion in unused liquidity before getting funding from the Feds. The Federal Reserve created a program called the Bank Term Funding Program, which aims to provide loans to affected banks for up to a year.

After the incident, the SEC and the DOJ are now investigating the collapse of Silicon Valley Bank after regulators have taken over. The investigations have not yet looked at the stock sales made by SVB officers closely before the bank's collapse.

The CEO and CFO have not yet commented on the investigations.

See flow at unusualwhales.com/flow.

Other News:

• First Republic bank is down by 77% despite receiving additional liquidity from the Feds and JPMorgan Chase
• SEC and DOJ Investigate Silicon Valley Banks, SIVB, Collapse

Resources:

CNBC TV18

Bloomberg