Bio-Bust: Investigating Biotech Stock Factors Contributing to Abnormal Returns in the Wake of Silicon Valley Bank\u27s Failure

Following the unprecedented collapse of Silicon Valley Bank (SVB) in March 2023, this study explores abnormal stock price reactions within the biotechnology sector. As the chosen financial institution for countless Silicon Valley-type technology and healthcare firms, SVB\u27s failure had a profound impact on small to mid-sized biotech companies. Analyzing a dataset of 180 biotech firms during a two-day event window over SVB’s collapse, I investigate whether exposure to SVB, or other factors, was the primary contributor to negative abnormal stock price reactions, considering variables such as the percentage of cash held at SVB, whether a firm maintained an active SVB relationship, lead drug asset maturity, and market capitalization. Using event study methodology with univariate and multivariate regressions, my findings reveal that firms with active SVB relationships, especially smaller and early-stage entities, experienced more pronounced negative abnormal returns. These results not only emphasize the vulnerabilities of biotech companies tied to financial institutions like SVB but also offer insight on the interplay between market dynamics and institutional failures

Cryptocurrency in the Aftermath: Unveiling the Impact of the SVB Collapse

In this paper, we explore the aftermath of the Silicon Valley Bank (SVB) collapse, with a particular focus on its impact on crypto markets. We conduct a multi-dimensional investigation, which includes a factual summary, analysis of user sentiment, and examination of market performance. Based on such efforts, we uncover a somewhat counterintuitive finding: the SVB collapse did not lead to the destruction of cryptocurrencies; instead, they displayed resilience

Silicon Valley Bank crisis and banking and technology sector: evidence from Israel

This study investigates the impact of SVB crisis on the banking and technology sectors of Israel. There are many research papers that have investigated the impact of SVB crisis on the global equity markets. However, there is none that has done a sectoral analysis on the countries that are impacted by the collapse of SVB. By using event study methodology, the results of this paper have shown that the banking sector is negatively impacted at the beginning of the collapse of the SVB but turns to positively impacted after few days of the collapse of the SVB and the technology sector is positively impacted from the collapse of SVB. The results also proved that financial contagion is present and the banking and technology sector of Israel are not efficient during the SVB crisis. Furthermore, the results prove that the impact of SVB crisis is different for both the banking and technology sectors of Israel. This paper purposed that investors should short sell or not include the banking stocks in the portfolio for the first two days after the collapse of SVB and should include the banking stocks in the portfolio starting from the third day after SVB has collapse to increase expected returns of the portfolio. Besides that, the results suggest that investors should invest more in the technology sector after the collapse of SVB compared to the period before the collapse of SVB

Analysis of the Collapse of Silicon Valley Bank

Inspired to explore her interest in finance, Melanie chose a timely and relevant research topic in the collapse of SVB

The impact of the SVB collapse on global financial markets: Substantial but narrow

We investigate the impact of the collapse of Silicon Valley Bank on global financial markets, identifying significant but narrow impacts. Abnormal returns are significant and negative for US equities, global banks, Bitcoin, as well as GCC equities. However, abnormal returns are insignificant for most fiat currencies, metals, and energy markets. That the SVB collapse had minimal effects on these markets suggests that the SVB event had a major but constrained effect on the global financial system, affecting significantly a small number of markets while largely ignoring others. Results highlight possible contagion points with regard to reactions to banking stress

The Relative Ages of Galactic Globular Clusters

We present a review of the present state of knowledge regarding the relative ages of Galactic globular clusters. First, we discuss the relevant galaxy formation models and describe the detailed predictions they make with respect to the formation timescale and chemical evolution of the globular clusters. Next, the techniques used to estimate globular cluster ages are described and evaluated with particular emphasis on the advantages and disadvantages of each method. With these techniques as a foundation, we present arguments in favor of the following assertions: 1) The age of a globular cluster is the likeliest candidate to be the global second parameter, which along with metal abundance, controls the morphology of the horizonal branch. 2) A total age range of as much as $\sim$5 Gyr exists among the bulk of the Galactic globulars. 3) There is a significant relation between age and metallicity among the Galactic globular clusters if the slope of the \mvrr-\feh relation is less than $\sim$0.23. These conclusions along with other supporting evidence favor a formation scenario in which the inner regions of the Galactic halo collapsed in a monotonic fashion over a short time period much less than 1 Gyr. In contrast, the outer regions of the halo fragmented and collapsed in a chaotic manner over several Gyrs.Comment: Invited review to appear in PASP. Uses aastex. 45 pages with 9 figure

The rise and fall of silicon valley bank, part Ll: an Angel has fallen

Inadequate corporate governance and asset-liability management amid the Fed’s aggressive interest rate hikes triggered the third-largest bank failure in U.S. history and rattled the in novation economy. With unprecedented deposit inflows and little loan demand, SVB exten sively invested in long-term bonds, which lost value as rates climbed. Simultaneously, a slowdown in VC activity reduced deposit inflows, while withdrawals by VC-backed com panies increased. Realized losses from forced bond sales and a failed capital raise destabi lized SVB further. The crisis peaked when venture capitalists advised withdrawing funds, triggering a digital bank run that led to a $42 billion outflow in just 48 hours

Analyzing the Financial Catastrophe of Silicon Valley Bank and its Influence on Indian Start-ups and the Indian Stock Market

The paper explores the financial disaster of Silicon Valley Bank and its consequences for Indian start-ups and the Indian stock market. The study uses secondary data from 2018–2022 to analyse the bankruptcy of Silicon Valley Bank, analysing the relationship between interest revenue and non-interest revenue on the net profit of SVB and studying the impact of the collapse on Indian start-ups and the Indian stock market through regression analysis and existing literature, respectively. The findings suggest that 2018, 2019, and 2021 indicate a moderate risk of bankruptcy and a low likelihood of bankruptcy in 2020; however, 2022 provides a clear indication of bankruptcy. The paper also suggests that non-interest revenue significantly influenced or had an optimistic effect on Silicon Valley Bank's net profits, while interest income has not significantly influenced or positively impacted Silicon Valley Bank's net profits. The paper also finds that the Silicon Valley Bank crisis, primarily affecting the US, may not have the same profound impact as the 2008 Lehman Brothers crisis, which caused a global recession, and may have fewer repercussions in India due to unfavourable public opinion. Keywords: The Silicon Valley Bank Collapse, Indian start-ups, Indian Stock Market, DOI: 10.7176/RJFA/15-1-02 Publication date: January 31st 202

NGC 2419, M92, and the Age Gradient in the Galactic Halo

The WFPC2 camera on HST has been used to obtain deep main sequence photometry of the low-metallicity ([Fe/H]=-2.14), outer-halo globular cluster NGC 2419. A differential fit of the NGC 2419 CMD to that of the similarly metal-poor \ standard cluster M92 shows that they have virtually identical principal sequences and thus the same age to well within 1 Gyr. Since other low-metallicity clusters throughout the Milky Way halo have this same age to within the 1-Gyr precision of the differential age technique, we conclude that the earliest star (or globular cluster) formation began at essentially the same time everywhere in the Galactic halo throughout a region now almost 200 kpc in diameter. Thus for the metal-poorest clusters in the halo there is no detectable age gradient with Galactocentric distance. To estimate the absolute age of NGC 2419 and M92, we fit newly computed isochrones transformed through model-atmosphere calculations to the (M_V,V-I) plane, with assumed distance scales that represent the range currently debated in the literature. Unconstrained isochrone fits give M_V(RR) = 0.55 \pm 0.06 and a resulting age of 14 to 15 Gyr. Incorporating the full effects of helium diffusion would further reduce this estimate by about 1 Gyr. A distance scale as bright as M_V(RR) = 0.15 for [Fe/H] = -2, as has recently been reported, would leave several serious problems which have no obvious solution in the context of current stellar models.Comment: 32 pages, aastex, 9 postscript figures; accepted for publication in AJ, September 1997. Also available by e-mail from [email protected]

From Tech Hub to Banking Failure: Exploring the Implications of CBDCs on the Destiny of Silicon Valley Bank

The potential implications of central bank digital currencies (CBDCs) on Silicon Valley Bank (SVB) are vast, particularly when it comes to oversight of the bank. This paper aims to explore how the introduction of CBDCs could have impacted SVB and its eventual collapse. The introduction of CBDCs has the potential to disrupt traditional banking systems, which could impact the stability of the financial industry. However, CBDCs can also provide real-time monitoring and oversight, which could help to prevent bank failures. This paper examines the potential impact of CBDCs on SVB and how it could have been impacted by the real-time monitoring provided by the Federal Reserve. The findings suggest that the introduction of CBDCs could have helped to prevent the collapse of SVB by allowing for real-time monitoring and oversight. The implications of this research are significant, as it highlights the potential benefits of CBDCs in preventing future banking failures and strengthening financial stability