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You only get paid to take on risk. If SVB hedged away the interest-rate risk that they take on by buying long-term bonds, they would no longer be taking on as m
by ThrustVectoring 4y ago
You only get paid to take on risk. If SVB hedged away the interest-rate risk that they take on by buying long-term bonds, they would no longer be taking on as much risk and thus no longer potentially earning as much profit.
- cezart 4y agoOr so little profit, as in this particular turn of events