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Bank run was triggered by extremely poor investment decisions of SVB and not by people acting on that public information.
by qaq 4y ago
Bank run was triggered by extremely poor investment decisions of SVB and not by people acting on that public information.
- yasp 4y agoGiven the economic factors + SVB's deposit base, what should they have done differently?
- qaq 4y agobought bonds with 1y maturity and not 10y
- voisin 4y agoOr simply laddered their maturities to blend a lower average duration.
- skeeter2020 4y agoPretty crazy that the GIC savings strategy we teach kids in junior high might have mitigated this.
- aaomidi 4y agoI mean if I knew interest rates were gonna go high all the way back in 2021, then why didn’t SVB? Oh right cause they didn’t have a CRO. They bought one of the worst assets you could’ve in that time frame. MBSes with barely any interest and long maturity times.