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What specific risky behavior are you referring to? Everything I’ve read points to the fact that they bought a ton of long term US treasury bonds at a low intere
by rashkov 4y ago
What specific risky behavior are you referring to? Everything I’ve read points to the fact that they bought a ton of long term US treasury bonds at a low interest rate. Obviously this worked out very poorly for them, but I wouldn’t call this risk seeking behavior.
- yunwal 4y agoSVB lobbied congress to not be subject to liquidity stress tests and got caught with their pants down. They didn’t have to buy 10 year bonds. They also didn’t have to buy volatile mortgage securities, which they did. They were obviously playing fast and loose with the rules (or making their own rules as they went).