SIVB
#Great.
Thanks, <UNK>.
This is <UNK>, I will start.
When you look at capital call loans for private equity firms, you're looking at prime minus, I'd say, half to maybe in that general range with 25 to 50 basis points on either side of that range.
So clearly it is lower yielding then our overall loan portfolio, which is why the average loan yield is coming down mainly.
But another point, I just want to make sure, this is really important, is that when you look at it, the reason that we are comfortable doing that from a return on capital perspective is the fact that the overall credit quality of that portfolio has been exceptional and we certainly expect that it will continue to be exceptional for the foreseeable future.
It's a big market, we have a very strong competitive advantage and so we still expect that to see nice growth.
It's an interesting question because you have to look at it in two different ways.
<UNK> <UNK> would say the vast majority of that portfolio now is in broad-based private equity, so it's a little bit less depending upon, what I would say, is the innovation economy or the tech industry overall.
That being said, it is acceptable to the market overall and activities around the globe; but it's kind of funny in the sense of, in one way, it can be impacted negatively to existing companies but their willingness to put more money to work, actually the function of the price of what they're going into and so if the economy starts to slow, some of them actually look at the market as being a great time to be in the market.
A great example of that is what you see in the UK.
Over the last six months you can look at what's happened with the pound to dollar ratio, so we're seeing a lot of (multiple speakers) private equity firms coming in and actually looking at that as a good opportunity, roughly 20%, 25% discount.
So just to give you a little bit of color, first that the answer would be it's very modest.
The second answer ---+ about 88% of our portfolio is loading rate versus fixed-rate and it's about 60% tied to prime versus 40% LIBOR.
Maybe one other thing to add on there, certain parts of our portfolios do have floors roughly around 100 basis points of LIBOR, particularly in the sponsored buy-out portfolio which is roughly about $2 billion of our loan portfolio.
So that will put some hesitation and then you've got the 30, 60, 90, one year type LIBORs as well too in the reset.
So that is why, as <UNK> described it, it's actually quite a modest thing.
But once we do break through a floor of 100, then you would start to see more of that impact.
Is quite all right, <UNK>.
This is <UNK>, so when you look at it in dollar terms, it actually has changed a little bit but not much.
Which is interesting because if you looked at it on constant dollar terms you would've seen roughly a 15% growth rate.
So the flatness may appear not to be a great number.
We look at it as a positive and clearly hope the pound to dollar has stabilized.
Yes.
Great.
Thanks.
I just want to thank everyone for joining us today.
We had a great quarter that we are extremely proud of and an outlook that we expect to continue to drive solid growth into 2017.
I want to thank all our employees again for doing such a great job and taking care of our clients and for our clients again, as always, putting their trust in us, we don't take that trust lightly.
And I also have a special thanks, this is my close.
Today, I just want to do a special shout out to Joe Morford.
Joe has been an analyst that's covered Silicon Valley Bank for the last 24 years, pretty much my entire tenure at Silicon Valley Bank.
He recently stepped down from RBS and I just wanted to say Joe ---+ RBC, sorry, Joe.
I just wanted to say thanks, Joe, for all the great work over the years and best wishes for whatever your next step in your career is.
Thanks, and have a great day.
