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To clarify I don't know the actual strategy they took. I am responding to how they can have risk in "make safe loans" or "buy safe bonds" scenario. > They woul
by citizen_friend 4y ago
To clarify I don't know the actual strategy they took. I am responding to how they can have risk in "make safe loans" or "buy safe bonds" scenario.
> They would be perfectly safe have they dumped their deposits into T-Bills.
How is this different than what you described? If the rate increases beyond the coupon of a 10 year treasury, its value drops. Are you referring to extremely short term treasuries?
- snuxoll 4y ago> Are you referring to extremely short term treasuries? T-Bill: 52 weeks or less duration T-Note: 2-10 year duration T-Bond: > 10 year duration