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In this case SVB bought long duration bonds, and they lost value because of higher interest rates. So this caused their books to become unbalanced. Other banks
by justinzollars 4y ago
In this case SVB bought long duration bonds, and they lost value because of higher interest rates. So this caused their books to become unbalanced. Other banks could have this problem.
- notfromhere 4y agoWhat forced them to realize losses was high withdrawal rates because tech funding went down. But SVB would have been fine if they didn’t inadvertently trigger a mass panic bank run