3 ms·

I agree with your assesment but the impairment in those long maturity assets were not 50% to begin with, so the realized losses couldn't be as high. Back of th

I agree with your assesment but the impairment in those long maturity assets were not 50% to begin with, so the realized losses couldn't be as high. Back of the napkin, take the 10yr and 30 yr spot prices today for issues from 1-2 years ago, and that's your max haircut. I believe some are trading at 70 cents , so we are talking about 30%. And that's worst case (not all assets would have sold at that price, but better). Remember this is highly liquid assets. Not some exotic stuff. Its a big loss, but not 50% Brex's offer is collaterized up to 25 cents per dollar. SO, unless SVB lost huge money elsewhere, there's no way SVB lost > 75% mostly off their MBS portfolio (or other assets, for that matter).

gpm 4y ago
> Brex's offer is collaterized up to 25 cents per dollar. Do you know this? That's a number I (and some other posters) pulled out of a hat as a reasonable thing to do, but I don't think any of us had any sources for it?
- IG_Semmelweiss 4y ago
  im sorry, im just repeating what was said. i dont know it. i misunderstood that item to be a fact
mlyle 4y ago
> Back of the napkin, take the 10yr and 30 yr spot prices today for issues from 1-2 years ago, and that's your max haircut. I believe some are trading at 70 cents , so we are talking about 30%. And that's worst case (not all assets would have sold at that price, but better). Depends upon how much was liquidated and already went to paying out fleeing customers at 100% of deposits. The average haircut could be 30%, but late to move depositors could have it worse (this is why you participate in a run on the bank).