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Thing is, it's probably true for 1% of the cases, that things are slow for no good reason. Trick is how to identify that 1% of times when you can truly make som
by capableweb 4y ago
Thing is, it's probably true for 1% of the cases, that things are slow for no good reason. Trick is how to identify that 1% of times when you can truly make something better. But 99% of the times, it's all shit and ends up like this, or similarly.
- deleted 4y ago[deleted]
- ethbr0 4y agoThe irony is that, as near as I can tell, they cratered their balance sheet because they were heavily into long maturity bonds (i.e. super conservative). https://www.cnbc.com/2023/03/09/svb-financial-falls-more-than-50percent-as-tech-bank-looks-to-raise-more-cash.html https://www.cnbc.com/2023/03/09/svb-financial-falls-more-tha... That seems an odd position to allow to build given the current macro. Post-Fed changing their mind on inflation, the course was charted. I'm guessing they held to avoid taking losses, and at some point it became untenable?
- travisjungroth 4y agoThe problem isn’t what they bought it’s what they sold. It was all correlated. Loans to startups were going bad while startups were pulling deposits since they weren’t getting funded. So you’re taking losses while losing capital. Doesn’t really matter what else you’re holding at that point if it doesn’t happen to be skyrocketing right now. Long term bonds will never be that thing, but at any point in time almost nothing else would be, either.
- kgwgk 4y ago> long maturity bonds (i.e. super conservative) Do you think that long maturity bonds are more conservative than short maturity bonds?
- JumpCrisscross 4y ago> Do you think that long maturity bonds are more conservative than short maturity bonds No. Nobody does. That’s why they typically yield more.
- kgwgk 4y agoMaybe ethbr0 does - considering the quote about super-conservative long maturity bonds. Why do you say that he doesn't?
- JumpCrisscross 4y ago> considering the quote about super-conservative long maturity bonds Within the set of long-maturity bonds, Treasuries are conservative. That doesn’t make them conservative per se.
- kgwgk 4y agoFull quote: "The irony is that, as near as I can tell, they cratered their balance sheet because they were heavily into long maturity bonds (i.e. super conservative)." What exactly makes you think that the "(i.e. super conservative)" remark is not about "long maturity bonds" - which is the think that he just referenced? He didn't mention Treasuries at all. I find quite difficult to interpret the "super conservative" as being about some kind of long-maturity bonds relative to another kind of long-maturity bonds.
- ethbr0 4y agoTreasuries.