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It’s not questionable if you’re hedging appropriately to provide liquidity.
by coredog64 3y ago
It’s not questionable if you’re hedging appropriately to provide liquidity.
- astrange 3y agoWell, that depends on your depositors not starting a bank run as well. You can't insure against a sure thing, so it's not actually possible to hedge everything. I don't think SVB necessarily could have done this; there might not've been a position without duration risk for them that actually made them any money.