Oaktree is one of a number of hedge funds and banks offering to acquire deposits held by startups at the failed Silicon Valley Bank, but only at steep discounts, according to reports.

Oaktree is one of a number of hedge funds and banks offering to acquire deposits held by startups at the failed Silicon Valley Bank, but only at steep discounts, according to reports. 

A report by Semafor cites unnamed sources as revealing that bids ranging from 60 cents to 80 cents on the dollar, have been made reflecting a range of expectations on how much of the uninsured deposits will ultimately be recovered once the bank’s assets are sold or wound down. 

Another report from the Information says that traders from Jefferies are contacting startup founders and offering to buy their deposit claims offering at least 70 cents on the dollar. 

The US Federal Deposit Insurance Corp (FDIC) only insures deposits up to $250,000 and, according to a regulatory filing made by SVB, more than 93% of the bank's domestic deposits were uninsured at the end of last year. 

According to the FDIC, insured depositors will have access to their funds by no later than Monday morning, while uninsured depositors will get a receivership certificate for the remaining amount of their uninsured funds.