3 ms·
Nicely ambiguous what is to happen at the end of the year. Rollover on the same terms? Demand for full repayment? Might have to wait a year to find out.
by everybodyknows 4y ago
Nicely ambiguous what is to happen at the end of the year. Rollover on the same terms? Demand for full repayment? Might have to wait a year to find out.
- coolspot 4y agoBanks don’t need that much liquidity unless some exceptional thing happens, like a bank run. SVB had enough assets to cover all the deposits. Problem was that they couldn’t convert those assets (long maturity treasuries) back to cash fast enough. Now there is a facility in place that lets you convert those treasury notes to cash as soon as needed.