But to the extent that the Silicon Valley Bank saga reflects underlying shakiness in tech, those concerns are likely already reflected in the state’s“Yes, weakness in tech is going to result in some weakness in revenues but this doesn’t change the contours of what we would expect,” she said. “I don’t expect this will be a repeat of ‘08, I expect this to be more of an isolated event.”
The state’s public sector pensioners also aren’t likely to take a major hit in the short-term. Of the roughly $444 billion in investments currently managed by the California Public Employees’ Retirement System, were bonds to Silicon Valley Bank, according to a summary of the fund’s investments through June of 2022. More recent figures are not yet available.
Broader rumblings in the tech world would reverberate through the pension fund’s portfolio, but the exposure is still relatively limited. Taking Apple, Alphabet, Amazon, Meta and Microsoft together, CalPERS holds $1.7 billion in corporate bonds. California Department of Finance spokesperson H.D. Palmer stressed that the failure of a single bank, though painful for those directly involved, won’t on its own shake a state as large as California.
“Is this endemic? Is this a problem that 10 other banks are facing?” he said. “What we know so far comes nowhere near to bearing that type of projection out.”Keep up with all the latest news, arts and culture, and TV highlights from KPBS.