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Per their mid quarter update[1] there was ~20bn outflowing per quarter, so the question I have is if they had to sell their MBS for 20bn at a 2bn loss, that see
by cloverich 4y ago
Per their mid quarter update[1] there was ~20bn outflowing per quarter, so the question I have is if they had to sell their MBS for 20bn at a 2bn loss, that seems it would only buy them an extra quarter or so of liquidity. Surely they couldn't do that every quarter and remain solvent? Did this trigger their insolvency or accelerate it?
[1]: https://s201.q4cdn.com/589201576/files/doc_downloads/2023/03/Q1-2023-Mid-Quarter-Update-vFINAL3-030823.pdf https://s201.q4cdn.com/589201576/files/doc_downloads/2023/03...