[PeterisP]

The bond is worth less not temporarily but permanently. The (low) market price of such a bond is appropriate - it might rise (if the current interest rates fall), but it might as well fall even more (if the current interest rates rise even higher). Sure, in nominal dollars you get the 'full' amount back after xx years, but a 203x-dollar is worth less than 2023-dollar, and the market price of that bond reflects the markets' current best estimate on how much less that future dollar is worth.

You can't make whole the current depositors by saying that they'll get the same quantity of 203x-dollars (because you owe them 2023-dollars which are worth more), you can't make whole the current depositors by trading the future claims on these 203x dollars (i.e. bonds) to someone else because the price you can get is not enough to make them whole; and you can't make whole the current depositors by paying them back in year 203x their dollars with market-rate interest because you don't have enough assets to cover that market-rate interest, only the low, low interest that SVB fixed last year or before.