3 ms·
https://twitter.com/fabiusmercurius/status/1634227996172365826?s=46&t=kmouJSqr-Xk1EkUYlfsCfw https://twitter.com/fabiusmercurius/status/16342279961723658... (Th
by hylaride 4y ago
https://twitter.com/fabiusmercurius/status/1634227996172365826?s=46&t=kmouJSqr-Xk1EkUYlfsCfw https://twitter.com/fabiusmercurius/status/16342279961723658... (The whole thread dives in more).
Essentially, when interest rates go up, current bonds temporarily fall in value as people can buy higher yielding ones. For a variety of reasons, SVB needed to sell the bonds at a loss now to cover deposit withdrawals, etc.