There were definitely issues with SVB. They reportedly didn’t hedge at all against interest rate rises. That didn’t present a big issue until this year… Also ap

There were definitely issues with SVB. They reportedly didn’t hedge at all against interest rate rises. That didn’t present a big issue until this year… Also apparently they had an unusually huge amount of deposits backed by mortgage-backed securities. This is potentially going to be a problem for other banks (although SVB seems to have been unusually susceptible), as when interest rates are so high but banks can’t afford to pay anything like that on deposits (because all their loan book and much of their bonds is at lower rates), there will be a lot of cash flowing out of banks into treasuries…