On the Impact of Silicon Valley Bank Failure : Evidence on the Reaction of Major Global Asset Classes

The objective of this study is to explore the impact of Silicon Valley Bank (SVB) failure on the major global asset classes. Apart from US T-Bills and the Gold, we do not find any significant response of other asset classes on the event day. More importantly, Gold seems to have acted as a safe haven. Moreover, US T-Bills witnessed a drop in returns indicating it is perceived as a risky asset during the entire episode. Overall, we find little evidence of reputation contagion or spillover from the failure of SVB to other asset classes