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To: PK1991
You said: SVB had a large stack of T-Bills

And that was in response to my comment #3 above which spoke about companies keeping cash in T-Bills (and other similar short securities) and not bank deposits.

T-Bills are not long bonds (as I am sure you know).

But you are certainly correct in that SVB got caught in an arbitrage trap by buying long bonds with deposit monies. IIRC, that's what brought them down.

20 posted on 03/14/2023 5:44:38 AM PDT by RoosterRedux
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To: RoosterRedux

I see. Thank you for the clarification. I did use the wrong terminology. To my point, it still seems pensions that own bonds are safe because there is no threat they’ll need to immediately sell or face unexpected withdrawals.


21 posted on 03/14/2023 5:46:49 AM PDT by PK1991 ( )
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