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Exactly right. I do think the speed of deposit growth in a low rate environment made that challenging though. Like if it were me, I'd grudgingly buy long-dated
by fisherjeff 4y ago
Exactly right. I do think the speed of deposit growth in a low rate environment made that challenging though.
Like if it were me, I'd grudgingly buy long-dated assets to keep the doors open, but also look toward reducing maturity as rates increase and start acquiring customers. Problem is that, very roughly speaking, those things only work if rates increase more slowly than you can acquire new customers.
- pas 4y agobut ... they could have charged customers to hold their money. or put it into money market funds. sure, less glamorous, but also less risky. of course they were also a startup, so making money was a bit more important than safety. it's just valley things.