SVB plummets 60% after higher interest rates spark billions in losses on a $21 billion bond portfolio

• SVB Financial plunged 60% on Thursday after it completed a sale of its $21 billion bond portfolio.
• The firesale of its bond portfolio generated a loss of $1.8 billion and drove the bank to raise capital from investors.
• Higher interest rates and a slowdown in the IPO market helped spur the big losses for SVB Financial.

Silicon Valley Bank-parent SVB Financial plunged 60% on Thursday after the company completed a $21 billion firesale of its bond portfolio, which led to a loss of $1.8 billion and spurred plans to raise more capital from investors. 

The bank said it would raise $2.3 billion from investors by selling stock, essentially diluting shareholders to cover the losses related to the bond sale.