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> They failed because they over invested in near 0% interest US treasuries, and then the Fed rapidly hiked rates to 5% Shouldn't they have been ready for that
by Fervicus 3y ago
> They failed because they over invested in near 0% interest US treasuries, and then the Fed rapidly hiked rates to 5%
Shouldn't they have been ready for that scenario and hedged against it though?
- anonporridge 3y agoSure, although the Fed at the time was signalling no chance of raising rates any time soon, then they turned around and jacked them at the fasted pace in recent history. A big lesson there, beyond don't fight the Fed, is don't trust the Fed.