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I understand how they ended up with losses, having bought long duration securities at the top. I'm saying they were still solvent despite the losses. They just
by ummonk 4y ago
I understand how they ended up with losses, having bought long duration securities at the top. I'm saying they were still solvent despite the losses. They just weren't liquid.
- mbreese 4y agoSolvent relative to the maturity date on the bonds though, right? If you need a closer date (because you need to fulfill customer cash flow requests), then solvent plus illiquid can become insolvent quickly.
- ummonk 4y agoNo I think more likely than not it's outright solvent if you look at current market value of the bonds. We'll find out by Monday whether it has been acquired or not.