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I don't think anyone is saying this? The decrease in value is due to wrong-way interest rate exposure, not due to a fire sale
by kmod 4y ago
I don't think anyone is saying this? The decrease in value is due to wrong-way interest rate exposure, not due to a fire sale
- bagels 4y agoWell, it's going to be both. Dumping 200b of bonds isn't going to yield premium prices.
- ummonk 4y agoThe decrease in value was due to exposure to long duration securities yes. The closure of the bank was due to a classic bank run after depositors panicked upon hearing of the decrease in value. They had 45 billion in withdrawals in a single day, out of ~175 billion in deposits. No bank could survive that.