2 ms·
This analysis [1] from the same FT is also quite insightful: > SVB is not a canary in the banking coal mine Even though this paragraph didn't make me too conf
by paganel 4y ago
This analysis [1] from the same FT is also quite insightful:
> SVB is not a canary in the banking coal mine
Even though this paragraph didn't make me too confident, contrary to what the author wanted to convey:
> Second, few other banks have as much of their assets locked up in fixed-rate securities as SVB, rather than in floating-rate loans. Securities are 56 per cent of SVB’s assets. At Fifth Third, the figure is 25 per cent; at Bank of America, it is 28 per cent.
28 per cent at the scale of Bank of America is a lot of money, big quantity (of money, in this case) by itself in many cases "transforms" into a quality thingie.
[1] https://archive.is/DpqFg https://archive.is/DpqFg