To: Mariner
It's mortgage bonds AND long-term U.S. Treasury bonds that were issued in 2020-21 at miniscule interest rates.
I think the latter was the problem that doomed Silicon Valley Bank.
10 posted on
06/04/2024 7:31:04 AM PDT by
Alberta's Child
(“Ain't it funny how the night moves … when you just don't seem to have as much to lose.”)
To: Alberta's Child
I read recently that we need to roll over a huge percentage of our Treasury Debt this year. The expiring rates are all of the near zero coupons. The new rates are going to be nearing 5%.
That will leave a mark.
17 posted on
06/04/2024 8:06:30 AM PDT by
Vermont Lt
(Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
To: Alberta's Child
Exactly! SVB was a great bank but had too many low interest bonds on the books. When the fed ratcheted up rates so quickly, there was suddenly no buyers of those bonds.
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