—— WeWork Finalizes Major Capital Restructuring; SVB Files for Chapter 11 Bankruptcy; AI IPO Oversubscribed 136 Times; BlackRock Fixed Income Strategist Retires; SPY ETF Sees $300 Billion Inflow in One Day; Coinbase Plans Overseas Platform; 1,400 Google Employees Petition CEO
1. WeWork Finalizes Major Capital Restructuring
Today, co-working company WeWork announced that key investor SoftBank Group will convert $1 billion of unsecured debt into equity to help reduce the company’s debt burden. The deal effectively lowers WeWork’s debt by $1.5 billion and injects $1 billion in new capital.
Additionally, WeWork stated it may delay the filing of its 10-K annual report.
After the announcement on Thursday, WeWork shares rose 13%.
In 2019, founder and former CEO Adam Neumann was ousted by the board due to concerns over his leadership and conduct.
Under new CEO Sandeep Mathrani, the company exited non-core operations and terminated underperforming leases—moves that eventually enabled it to go public.
WeWork said the SoftBank debt-for-equity swap has given the company a more sustainable capital structure, and it also secured extensions on some loan repayments.
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2. SVB Files for Chapter 11 Bankruptcy
Today, the parent company of Silicon Valley Bank (SVB) filed for Chapter 11 bankruptcy protection in New York.
While SVB, as a California-chartered commercial bank and member of the Federal Reserve System, was taken over directly by the FDIC, its parent company is eligible to file for bankruptcy to better protect $10 billion in remaining assets and liabilities.
SVB Financial Group’s books show $2.3 billion in cash, $500 million in securities, $475 million in other assets, and $3.4 billion in long-term debt.
The filing excludes its broker-dealer unit SVB Securities and venture capital arm SVB Capital.
Founded in Santa Clara, California, SVB is the largest U.S. bank to collapse in over a decade, with $209 billion in assets at the end of last year.
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3. AI IPO Oversubscribed 136 Times
Presight AI Holding, a data analytics company backed by Abu Dhabi AI firm G42, plans to raise $496 million in its upcoming IPO.
The IPO, set to debut on March 27, has already attracted over $25.8 billion in orders, making it more than 136 times oversubscribed—demonstrating strong investor demand in the Middle East.
Last year, buoyed by surging oil prices, Middle Eastern capital markets outperformed globally and drew strong interest from investors. Officials expect at least eight listings in Abu Dhabi this year.
This week, Adnoc Gas shares soared 25% post-listing, while Dubai-based AI Ansari Financial Services sold out its offering within an hour.
The Middle East remains one of the few bright spots in global markets, powered by oil-fueled growth.
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4. BlackRock Fixed Income Strategist Retires
This week, Scott Thiel, Chief Fixed Income Strategist at asset management giant BlackRock, retired after over 20 years with the firm.
The 57-year-old said in an interview that investing and capital markets remain his passion, and whatever he does next will be linked to them.
Thiel joined BlackRock in 2002 after working in derivative sales at Goldman Sachs. He helped steer the firm through the Eurozone debt crisis, Brexit, and recent Fed tightening cycles.
His final day was March 15. During his tenure, BlackRock’s AUM grew from $272 billion to $10 trillion. Thiel expressed confidence that BlackRock has the right leadership to carry on.
In 2010, Thiel’s team successfully bought Greek bonds at the bottom, anticipating post-crisis government intervention.
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5. SPY ETF Sees $300 Billion Inflow in One Day
On Thursday, the SPDR S&P 500 ETF Trust (SPY) attracted $361 billion in new funds—the largest single-day inflow since November 2020, and the sixth-largest in the past decade.
Investors returned to risk assets after the Federal Reserve intervened to contain the banking crisis. Money market funds also saw $112.7 billion in inflows.
BlackRock’s high-yield corporate bond ETF (HYG) and investment-grade bond ETF (LQD) saw $888 million and $502 million in inflows, respectively, reflecting improving risk appetite.
Following government intervention in the banking sector, investor sentiment toward U.S. equities turned bullish.
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6. Coinbase Plans Overseas Platform
According to three sources, cryptocurrency exchange Coinbase recently informed institutional clients that it may launch a new trading platform abroad.
The company has held discussions with market makers and investment firms about opening a global platform. While the host country hasn’t been confirmed, a spokesperson said Coinbase aims to expand internationally and will work with local regulators.
In light of the SVB collapse, regulatory scrutiny in the U.S. may tighten, but Coinbase sees a more promising environment in Europe and the UK.
Founded in 2012 in San Francisco, Coinbase is one of the oldest and most recognized crypto exchanges globally.
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7. 1,400 Google Employees Petition CEO
Recently, 1,400 Google employees signed and submitted a petition to CEO Sundar Pichai, urging better handling of layoffs.
The petition outlined several requests, including:
- Offering voluntary exits before forced layoffs and prioritizing laid-off staff for open roles;
- Allowing employees to use all paid time off;
- Freezing new hiring;
- Avoiding layoffs in regions facing humanitarian crises;
- Providing maximum support for staff at risk of losing work visas.
The employees wrote that Google’s layoffs had global consequences and that unity was needed for their voices to be heard.
On January 20, Sundar Pichai announced a 6% global workforce cut, resulting in immediate layoffs in the U.S. In Europe, where labor protections are stronger, the process is slower.
Employees plan to circulate the petition a few more days before submitting a final printed version to the CEO.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.