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Short Sellers Were Out Front of SIVB Upheaval. Here're the Most Shorted Bank Stocks

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In One Chart wrote a column · Mar 13, 2023 06:34
Short Sellers Were Out Front of SIVB Upheaval. Here're the Most Shorted Bank Stocks
Except for short selling data, we may find other risky banks using US bank loan to deposit ratios. The chart below shows how unique Silicon Valley really was...see it (Ticker: SIVB) in the lower right far away from the other regional banks:
Short Sellers Were Out Front of SIVB Upheaval. Here're the Most Shorted Bank Stocks
J.P. Morgan's chairman of market and investment strategy Michael Cembalest said in a note to clients over the weekend that SIVB has a high level of loans plus securities as a percentage of deposits, and very low reliance on stickier retail deposits as a share of total deposits. Bottom line: SIVB carved out a distinct and riskier niche than other banks, setting itself up for large potential capital shortfalls in case of rising interest rates, deposit outflows and forced asset sales.
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