You could go stronger with your assertion, that the MBS are actually fairly liquid (defintion: a quick sale will not cause a large drop in their value) but have

You could go stronger with your assertion, that the MBS are actually fairly liquid (defintion: a quick sale will not cause a large drop in their value) but have large losses in market value compared to when they were bought. SVB should not have been allowed to use HTM accounting on such a large portfolio of their assets generated from hot money inflows.