“””in late February in which it reported sharp falls in the market value of investment portfolios that were skewed to long-term mortgage-backed securities.”””
We have known for years that 1% ten treasury bonds or 3% 30 year mortgages would not last forever.
Yet, SVB was a binge buyer of those bonds and mortgages.
When Biden’s Inflation began two years ago, SVB apparently did nothing to sell off those holdings when their losses would have been minimal.
Apparently SVB couldn’t sell them off, as they had been designated as HTM (Hold to Maturity) reserves under U.S. banking reserve requirements.