The conundrum with underwater bonds/mbs is that you can make depositors whole, or give depositors money back now, but not necessarily both. If I had $1m in my

The conundrum with underwater bonds/mbs is that you can make depositors whole, or give depositors money back now, but not necessarily both. If I had $1m in my account and it was invested 100% in MBS around in 2021, it could take 10 years to actually get the whole $1m back, and only be worth like $800k now. I have effectively lost that 20% because you could just give me $800k now and I could put it in a MBS myself to get the same results.