SVB – a victim of liquidity squeeze

SVB – a victim of liquidity squeeze

In Ernest Hemingway’s novel The Sun Also Rises you will find a dialogue between two characters which goes like this: “How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly.” Sadly there are parallels with businesses and we have also...
Where are we in the economic cycle?

Where are we in the economic cycle?

Rising interest rates that add cost to a debt-heavy business has led to a re-appraisal of the typical model of buying a business and maximising debt. That was a feature of the low interest rate environment of the last ten years, and now the cycle has turned. Many of...
Are banks changing their appetite for risk?

Are banks changing their appetite for risk?

I have always been conscious that business owners and those in a company charged with financial responsibilities should consider the obvious route to seeking finance. That is…ask your bank. Banks have a duty to support their customers, they have detailed knowledge of...
Are experienced bankers disappearing?

Are experienced bankers disappearing?

Disappearance of banking experience? Last week I was in a room full of ex-bankers, many of whom had 30+ years of experience. Over the last 5 years Lloyds have lost 18% of their workforce – and NatWest 28%… What is going on? The banks have lost good and able...
What happens inside banks when times get tough?

What happens inside banks when times get tough?

The old investment saying “buy stocks so you can dream, buy bonds so you can sleep” does not seem appropriate at a time of market volatility and general downward expectations. What is unchanging is the importance of maximising returns from the associated risk, and it...