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I don't think any of these are relevant to the situation. 1 is obvious, that's CFA Level 1. 2 is also obvious but in 2021 the Fed said inflation was transitor
by blindriver 4y ago
I don't think any of these are relevant to the situation.
1 is obvious, that's CFA Level 1.
2 is also obvious but in 2021 the Fed said inflation was transitory. After over a decade of sub-2% inflation, it wasn't hard to not believe that.
3 is not true. As rates rise, more people pull money out of the stock market and park it into higher interest deposits. The problem with SVB is that they don't have a lot of retail customers that would park their investments.
- webmaven 4y ago> 3 is not true. As rates rise, more people pull money out of the stock market and park it into higher interest deposits. For "lower deposits" read "fewer startups get funded and deposit their funds at the bank."
- HDThoreaun 4y agoOh the fed said inflation was transitory, risk team can take the day off I guess, no need to worry. 3. is true because literaly half their were deposits startups who will have a hard time raising if interest rates rise.
- ketzo 4y agoI don't know how fast banks can sell treasuries, but I feel like the answer has to be shorter than "all of 2022" 3 is pretty predictable for a bank that advertised itself as banking half of all VC-backed startups in the U.S.