4 ms·
Given the economic factors + SVB's deposit base, what should they have done differently?
by yasp 4y ago
Given 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.