3 ms·
I don't think you're right. Here is an article from 2021 describing this. [1] Everyone has been doing it. SVB is unique in that its customers relied on financin
by nemo44x 4y ago
I don't think you're right. Here is an article from 2021 describing this. [1] Everyone has been doing it. SVB is unique in that its customers relied on financing to continue and because it hasn't they have been drawing their runway down. Other banks don't face this dilemma necessarily. Or they do and are coming up next. I don't know if you noticed, but a lot of banks stocks are down massively this week.
[1] https://www.nytimes.com/2021/08/25/business/banks-government-bonds.html https://www.nytimes.com/2021/08/25/business/banks-government...
- lazide 4y agoFolks knew it was going to happen - but banks are highly regulated and don't have a lot of choice in what they can invest in, it has to be 'safe'. Which means specific types of bonds. It's why the fed is currently bailing out the industry by being willing to take them all at par value, not market value, in exchange for cash.