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To clarify, SVB's problems are the result of The Fed's change in direction. It just takes a while to see the affects of those decisions.
by chiefalchemist 4y ago
To clarify, SVB's problems are the result of The Fed's change in direction. It just takes a while to see the affects of those decisions.
- salawat 4y agoSVB's problems were the result of glutting on long maturation bonds instead of bills.
- chiefalchemist 4y agoAs it was explained to me, the Fed increasing interest rates impacted the value of the bonds held by SVB. As that value contracted SVBs was eventually in trouble.