Silicon Valley Bank's Troubles: Contagion Fears and Losses.

Silicon Valley Bank's collapse was caused by its success in attracting billions of dollars in deposits from tech companies during the pandemic, which it invested in US government bonds. However, when interest rates rose, the value of these bonds fell, and the bank struggled to sell them to meet the demands of panicked customers withdrawing their deposits. This led to a bank run and the collapse of the bank, causing concern for smaller banks and leading to increased demand for US government bonds.