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They bought bonds, which tanked when the Fed raised interest rates by 5% in a year. It seemed sane, until now
by FormerBandmate 4y ago
They bought bonds, which tanked when the Fed raised interest rates by 5% in a year. It seemed sane, until now
- johngladtj 4y agoThe bonds they were legally required to purchase?
- PKop 4y agoif they bought short term bills they wouldn't have lost value like the 10 yrs did. So, they made a duration mistake.
- yeahsure22 4y agoBut they didn’t have to buy THOSE bonds. They bought the wrong bonds.
- themitigating 4y agoDid they know they were buying the wrong bonds?
- dahdum 4y agoThey chose to buy the much riskier bonds to support their very high 4.5% savings yield.
- MrMan 4y agothey were offering 4.5%? that explains a lot in terms of their reaching for yield in low quality assets
- lokar 4y agoNo, they were not legally required to buy 10 year treasuries