>> but you don't really care about that when you are intending to hold the bonds to maturity. They where solvent when bonds where valued at maturation rates A

>> but you don't really care about that when you are intending to hold the bonds to maturity. They where solvent when bonds where valued at maturation rates Actually if you're a bank whose business model is predicated on interest spread between your assets and liabilities you do care. This is particularly true for banks like SVB whose duration of liabilities (deposits) is short because suddenly cost of deposits rises while longer-duration 'held to maturity' assets still generate the same (low) rate of interest. Suddenly the bank is loss-making. People are talking about mark to market like it's irrelevant but it's actually a very important market signal. It is not just relevant for balance sheet valuation. It is also a signal of future income statement profitability unless duration of assets is well matched with duration of liabilities.