Global Feed Post Login
Replying to Avatar Mike Brock

Yeah, SVB failed because of an deposit duration/asset maturity mismatch, which couldn’t be corrected due to the cost of rolling those assets, which was a result of terrible risk management on their balance sheet. Their completely loss of liquidity was a function of that. Not a function of the bank being insolvent.

Avatar
Derek Ross 2y ago

Thanks for clarifying that, Mike.

Reply to this note

Please Login to reply.

Discussion

No replies yet.