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You missed the important part - they added the ability to borrow while valuing collateral at cost. Previously it had to be valued at market price, which was not
by gizmondo 4y ago
You missed the important part - they added the ability to borrow while valuing collateral at cost. Previously it had to be valued at market price, which was not sufficient for SVB (because it was insolvent on the mark-to-market basis).