Saloni Multani, partner at Galvanize Climate Solutions, cites FDIC data on the unrealized bond losses facing US banks due to rising interest rates.
Assertion Supported
Multani: SVB carried a $15B unrealized hole in held-to-maturity assets
“So you know there was a fifteen billion dollar hold in the book, but what they carried them at, yeah, what they carried them at was the fifteen billion higher.”
Insight
Multani: Depositors cannot realistically conduct deep risk due diligence on banks
“It's, look, again, it is far too much to ask for depositors to do this type of work on an institution they're going to leave their deposits with.”
Assertion Supported
Multani: SVB financed roughly 60% of US community solar projects
“It's like, 60% of community solar projects. Yeah, that was in that same article. I think it's sort of a, sort of like a remarkable stat, because it's such a huge, and again, I'm sure a lot of it is in this area, so some of it has to do with geography as well, …”
Prediction Not checkable as stated
Multani: Climatetech financing will not quickly snap back post-SVB acquisition
“I think folks will step into the void, but I do think we need to recognize that it's not gonna, oh, SVB's fixed, we're just gonna snap back to what it used to look like, and cost of capital's gonna go back to what it used to be, you know, the ability to access…”
Prediction Not checkable as stated
Multani: Innovation economy will not return to 2021 market conditions
“I don't think the impact of rising rates on the innovation economy and climate tech is, is over. I think, again, I don't think we can expect that this will pass, and we're going to go back to what it was in 21, early 22.”
Insight
Multani: Decarbonization is fundamentally a capital stock turnover problem
“Climate is at its core a capital stock turnover problem where we need to deploy Ultimately, pretty low-cost capital. The corpus of it needs to be in order to turn over our brown infrastructure and make it green.”