4 ms·
SVB was offering above market interest rates though: According JPM: “At the end of 2022, SIVB only offered 0.60% more on deposits than its peers as compensatio
by ec109685 4y ago
SVB was offering above market interest rates though:
According JPM: “At the end of 2022, SIVB only offered 0.60% more on deposits than its peers as compensation for the risks illustrated below; in 2021 this premium was 0.04%.”
- dehrmann 4y agoYou can find FDIC-insured savings accounts paying 4%, and bank interest rates are all over the places right now, so I wouldn't read into .6%. Calling out the 2021 number is disingenuous because the fed funds rate in 2021 was essentially 0%. Its's 4.57% right now. You're comparing kumquats and grapefruit.
- ec109685 4y agoIt shows they were being aggressive with their investments compared to parking things in the most safe vehicle possible: https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/eye-on-the-market/silicon-valley-bank-failure-amv.pdf https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/ins...