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You offer customers CDs if they want higher interest rates. Isn't that how it's been done for decades?
by benlivengood 4y ago
You offer customers CDs if they want higher interest rates. Isn't that how it's been done for decades?
- fisherjeff 4y agoYes, that would narrow the maturity gap and pass some rate risk on to customers. In SVB’s case, though, they would’ve needed to sell a lot of CDs relatively quickly, which means their rates (i.e., borrowing cost) would have to be high.