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Not the Fed's fault. SVB's fault for going all-in on 10year duration MBS. If they had mixed in a good amount of shorter duration tbonds/tbills they would've bee
by UncleOxidant 4y ago
Not the Fed's fault. SVB's fault for going all-in on 10year duration MBS. If they had mixed in a good amount of shorter duration tbonds/tbills they would've been fine.
- Scoundreller 4y agoIt’s also a clientele mix issue. If you have a healthy mix of business and retail clients, payday is a wash. If it’s a lot of business customers; every payday is like a predictable mini bank run. If you have a small number of large, correlated and communicating players, you have a huge bank run risk.