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>If we're not going to let economic signals tell companies to check who they're banking with before putting all their assets in one place, how can that happen
by RC_ITR 4y ago
>If we're not going to let economic signals tell companies to check who they're banking with before putting all their assets in one place, how can that happen
The assumption that an operating company should understand fixed income pricing dynamics, have a POV on future FED interest rate moves, and dive into each potential banking partners' asset duration is an interesting one, especially when most of SVB's deposits were made during a period of perpetually falling interest rates, where duration mismatch helped banks.
- AlexandrB 4y agoMaybe not each company, but the VCs who encouraged their portfolio companies to put everything in SVB should have some inkling of the risks involved in doing that.