Hedge funds are offering to buy startups deposits stuck at Silicon Valley Bank

[colesantiago]

https://www.semafor.com/article/03/11/2023/hedge-funds-offer-to-buy-deposits-stuck-at-silicon-valley-bank

[more_corn]

FDIC says the bank will be open for business on Monday. I expect the hedge funds are betting on total protection of deposits, not just the guaranteed amount. They’re betting 80 cents on the dollar. I’m with them. The people taking the other side of the bet are letting their nerves cheat them out of 20% of their balances.

[muzz]

If hedge funds are willing to pay up to 80 cents on the dollar, it implies they think they'll be able to recover more than that.

[grappler → muzz]

According to this article, 80 is the upper end of bids they're reporting; the lower end is 60 cents on the dollar.