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> - 97% of these MBS were 10+ year duration, with a weighted average yield of 1.56%. This is a pretty insane bet. Why didn’t they ladder the maturities to have
by voisin 4y ago
> - 97% of these MBS were 10+ year duration, with a weighted average yield of 1.56%.
This is a pretty insane bet. Why didn’t they ladder the maturities to have a lower average duration and less risk?
- makestuff 4y agoMy pessimistic view is that bonuses were paid out on invested cash not on cash just sitting there. So they had to buy something to get a fat bonus.
- voisin 4y agoShocking portfolio design isn’t regulated given how much of banking is regulated.
- rvnx 4y agoAs a bank, parking the money into long maturity bonds, especially when it's not your money, and your customer can take the money back anytime, and the current rates are 0% (so can go upward only...). Sounds like an insane investment decision.
- baremetal 4y ago[flagged]
- athammer 4y agoWhat does ESG have to do with this? Seems like your politically motivated to see the world through one lens.
- kimbernator 4y agoHow is that relevant at all?
- ummonk 4y agoThey were probably chasing higher yields in a low yield environment.