SVB collapse

Shocking_Blue

Thanks both (for iWeb query)

GazzaBloom

Sea_Shell said:

Personally, I'm sitting on my hands.

Watching Bloomberg is quite interesting.

Anything has got to be better than CNBS and Jim Cramer's barely intelligible ramblings that contradicts himself from day to day depending on which way the wind is blowing!

Malthusian

Shocking_Blue said:

Just a question,
Is cash in ISA stocks and shares accounts protected similarly (e.g that's been de-invested but kept as cash on the account for future ISA investment (thinking of iweb, which is part of Halifax, I think))?
Thanks

Yes, but any money you hold with whatever bank or banks iWeb is using to hold your money will count toward the £85,000 limit. And it may not be straightforward to find out which bank(s) they are. (I wouldn't assume it's Halifax.)
So if you hold £85,000 in a savings deposit account and have cash with iWeb, you may be at risk of going over the limit if they are using the same bank as your savings account. 
If you need to hold substantial cash in a stocks and shares ISA for any length of time, it is better to use a money market fund. Or transfer out to a cash ISA so you know where it is. (Stocks and shares ISAs can be freely transferred to cash ISAs and back again, which wasn't always the case.)
Unless you don't have large cash deposits and know you aren't in any danger of going over the £85k limit regardless of who iWeb puts client money with.

Eye2021

Sea_Shell said:

Personally, I'm sitting on my hands.

Watching Bloomberg is quite interesting.

Bloomberg is always over excited - the female newsreaders seem to try and out do each other by how fast they can talk.

Expotter

Seen reported in several different places, but this headline is from The Guardian

Silicon Valley Bank collapse ‘could force central banks to stop interest rate rises’

Apparently, the chance of a further rise in interest rates (here and in the US) next week has diminished significantly, where would that leave inflation though is anyone's guess.

Malthusian

Wow, it really is 2007 all over again. People still watch Jim Cramer?

GeoffTF

GazzaBloom said:
My uncertainty would be when to switch drawdown from stock funds portfolio to the cash in times like this week...do you let the week ride out, the month, the quarter or the year? Do you set a losses trigger point, 5%? 10%, 20%...??

A sensible plan is to take income from whichever is above your target percentage allocation, either from equities or cash/bonds. It is called cash flow rebalancing.

wmb194

Albermarle said:

wmb194 said:

Shedman said:

I see on BBC news website that Bank of London have submitted a bid for the UK part of SVB
and that Barclays may be considering a bid as are (per Sky News) OakNorth Bank and a ME bank.  

Hopefully this will help sentiment on stock market tomorrow

SVB UK appears to be minuscule : "Silicon Valley Bank’s branch in the U.K. became a separate bank subsidiary requiring its own capital and more intensive local regulation in August last after it reached 100 million British pounds, equivalent to $120.3 million, of insured small business deposits, according to the parent company’s 2022 annual report."

https://www.wsj.com/articles/bank-of-england-shuts-silicon-valley-banks-u-k-subsidiary-5a2e5b94

Edit: This makes it smaller than the smallest building society, the one branch Penrith with a balance sheet of £127m at the end of 2021.

It must have  grown very quick . The deposit amount being quoted in the news is nearly £7 Billion.

Yes, it's very strange that the WSJ was so far off.

GeoffTF

Malthusian said:

Shocking_Blue said:

Just a question,
Is cash in ISA stocks and shares accounts protected similarly (e.g that's been de-invested but kept as cash on the account for future ISA investment (thinking of iweb, which is part of Halifax, I think))?
Thanks

Yes, but any money you hold with whatever bank or banks iWeb is using to hold your money will count toward the £85,000 limit. And it may not be straightforward to find out which bank(s) they are. (I wouldn't assume it's Halifax.)
So if you hold £85,000 in a savings deposit account and have cash with iWeb, you may be at risk of going over the limit if they are using the same bank as your savings account. 
If you need to hold substantial cash in a stocks and shares ISA for any length of time, it is better to use a money market fund. Or transfer out to a cash ISA so you know where it is. (Stocks and shares ISAs can be freely transferred to cash ISAs and back again, which wasn't always the case.)
Unless you don't have large cash deposits and know you aren't in any danger of going over the £85k limit regardless of who iWeb puts client money with.

Here is the annual report for the Royal London Short Term Money Market Fund:

https://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/Documents.aspx/?type=packet_fund_doc_reports_and_accounts&id=c81b1326-15e7-4f2f-88e6-a7398a7cb22b&user=hvQAtyCsZruE5mY8aQ+2adCbEpC9rYbEJ7xXFAJaUB5v/pIJfZMuFAYmkQ9bnUTS&r=1

Look at the Portfolio Statement. Your money is invested in bank bonds. In the SVB collapse, the depositors kept all their money, but the shareholders and bond holders lost all of theirs. If you have cash in your S&S ISA, you will be a depositor with several banks. Each deposit will be protected up to £85K, even if the government decides to let depositors take a hit.

You are likely to get a higher return from a money market fund, but at greater risk than cash in your account.

quirkydeptless

You're waiting around for one Black Swan and then three come along all at once