'Chasing yield' was an inside joke at SVB—until it led to the bank's collapse.

The article focuses on the collapse of Silicon Valley Bank (SVB) in March 2023, attributing its failure primarily to the bank's strategy of "chasing yield" by investing heavily in long-term bonds instead of safer short-term options. Former executives, including Michael Descheneaux and Ken Wilcox, reflect on the bank's decision-making processes, emphasizing that while the underlying business model was sound, poor judgment and risk management led to significant losses when interest rates rose. They argue that the bank's tech-focused lending strategies were not the cause of its downfall, but rather a series of missteps and a lack of regulatory oversight. The article highlights concerns about the impact of SVB's closure on the tech lending ecosystem and the broader implications for innovation in the U.S. economy. [Extracted from the article]