4 ms·

The bonds they were legally required to purchase?

• PKop 4y ago
  if they bought short term bills they wouldn't have lost value like the 10 yrs did. So, they made a duration mistake.
• yeahsure22 4y ago
  But they didn’t have to buy THOSE bonds. They bought the wrong bonds.
  • themitigating 4y ago
    Did they know they were buying the wrong bonds?
    • nairboon 4y ago
      Of course, they are bankers, bonds are their daily business.
    • MrMan 4y ago
      I think maybe they are not very good at running a bank.
• dahdum 4y ago
  They chose to buy the much riskier bonds to support their very high 4.5% savings yield.
  • MrMan 4y ago
    they were offering 4.5%? that explains a lot in terms of their reaching for yield in low quality assets
• lokar 4y ago
  No, they were not legally required to buy 10 year treasuries