SVB collapse puts spotlight on S-Reits’ balance sheets

THE shocking collapse of Silicon Valley Bank (SVB) ought to be a wake-up call to investors to pay more attention to the balance sheets of listed companies.

SVB, America’s 16th largest commercial bank, had provided banking services to nearly half of all US venture-backed technology and life-science companies.

But a plan to raise capital and shore up its balance sheet led to a run on the bank. Less than 48 hours following the announcement, it avalanched into the biggest US bank failure since the global financial crisis.