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>Duration risk is risk. Correct, but the GP’s point was that it was not “startup creditworthiness risk”, the thing SVB was most ridiculed for taking on.
by SilasX 4y ago
>Duration risk is risk.
Correct, but the GP’s point was that it was not “startup creditworthiness risk”, the thing SVB was most ridiculed for taking on.
- makomk 4y agoYeah, arguably duration risk is pretty much the stogiest, most old-fashioned banking kind of risk that could possibly have tripped them up. Long-term loans and short-term deposits is basically what banks traditionally do.