SVB's collapse completely screwed things up for companies with bad credit

• The SVB collapse is going to make it a lot more expensive for companies with bad credit to raise capital.
• The spread on junk-rated bonds relative to US Treasuries has surged to the widest level since December 30.
• SVB's fall also eliminates a key source of funding for start-ups that would typically be denied by traditional banks.

The dust has yet to settle from the sudden collapse of Silicon Valley Bank, but one thing is for sure: the chaotic event has made it a lot more expensive for companies with bad credit to raise capital.