3 ms·
> Can they buy the same bonds that SVB has to patch the hole in their balance sheet? Unfortunately, in related news, the answer is 'yes', from the new BTFP.[1]
by unyttigfjelltol 4y ago
> Can they buy the same bonds that SVB has to patch the hole in their balance sheet?
Unfortunately, in related news, the answer is 'yes', from the new BTFP.[1] I wouldn't say this is wrong but it does seem like the kind of bazooka-brandishing that makes financial-folk panic still more.
[1] https://twitter.com/BenEisen/status/1635061019629289472 https://twitter.com/BenEisen/status/1635061019629289472
- kgwgk 4y agoI don’t thing those loans would be very useful for the bank that buys discounted debt in that example. Being able to borrow with “bad” collateral is nice but the main selling-point is not needing to recognize losses. If you don’t have unrealized loses to hide it doesn’t help much.