Replying to Avatar preston

I think they probably expected a recession by now, in which they would offload their longer duration debt when rates reset lower (I think all these banks are in the exact same boat, just a couple steps behind SVB).
Avatar
๐–‹๐–Ž๐–†๐–™๐–‰๐–Š๐–“๐–Ž๐–Š๐–— (ยฏ`โ—•โ€ฟโ—•ยดยฏ) 2y ago

SVB dumped their bonds now and took a 1.8B loss, who took the other side? If rates continue to go higher, wouldnโ€™t they be faced with the same problem? Why would a 1.8B hole trigger a bank run on a bank with 200B in assets?

Reply to this note

Please Login to reply.

Discussion

Avatar
Grand 2y ago

The person taking the other side - gets a discount.. there's lots of money out there believe it or not - but not a lot of opportunities to deploy it (bitcoin isn't an opportunity as it's the enemy of the current administration).