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Exactly. Low yielding long maturity assets are worth a lot less in a higher interest rate environment. The assets the bank held declined in value. This would ha
by barrkel 4y ago
Exactly. Low yielding long maturity assets are worth a lot less in a higher interest rate environment. The assets the bank held declined in value. This would have been a solvency issue, if not today, then someday very soon.
- anonymouskimmer 4y agoOnly if the depositors cash out en masse. Which SVB was at greater risk of than most banks, because of its particular clientele.