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> This is a liquidity problem (so far). How is that known currently? Edit: As opposed to a solvency problem?
by jpmattia 4y ago
> This is a liquidity problem (so far).
How is that known currently? Edit: As opposed to a solvency problem?
- nemo44x 4y agoBecause they sold long term bonds for a huge loss so they could create liquidity.
- jpmattia 4y agoI meant as opposed to a solvency problem (edited above.)
- RC_ITR 4y agoYou can look at page 19 of [0] and make a call for yourself. What we know happened is that they sold US treasuries for less than they paid. They did this because people withdrew money faster than they expected. If that has an impact on their loan book (mostly loans to investors), at the very least, that line of connection has not yet been drawn. [0]https://s201.q4cdn.com/589201576/files/doc_financials/2022/q4/Q4_2022_IR_Presentation_vFINAL.pdf https://s201.q4cdn.com/589201576/files/doc_financials/2022/q...