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Bank balance sheets are the opposite of a general busibess. SiVB's deposits are their liabilities. Their MBS portfolio is their asset, which has been hammered
by prasadjoglekar 4y ago
Bank balance sheets are the opposite of a general busibess.
SiVB's deposits are their liabilities. Their MBS portfolio is their asset, which has been hammered by rising rates. The correct haircut on that is not 20%, it's more like 90%. The stock market is betting that equity holders of SiVB are going to get wiped out.