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To: packagingguy

No!!!! SVB had excess exposure to LONG TERM BONDS.
Banking 101 says don’t do that with low yield bonds. If SVB had more short term bonds there would be no collapse.


11 posted on 03/15/2023 9:05:33 AM PDT by entropy12 (Food is most popular anxiety drug, exercise is the least popular.)
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To: entropy12

Its like the people running these banks had never heard of the concept of bond duration.

This hot mess also makes one wonder where the oversight agencies were? Prolly having woke parties of their own.


14 posted on 03/15/2023 9:11:23 AM PDT by Starboard
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To: entropy12; Starboard

“If SVB had more short term bonds there would be no collapse.”

Knowing to do that would have required hiring qualified bankers and paying attention to risk management and other boring fiduciary stuff.

As we all know it’s much more important for a bank to hire personnel according to Diversity, Equity and Inclusion. And to base lending on an Environmental, Social and Governance scorecard.

By those measures SVB is a roaring success.


26 posted on 03/15/2023 10:24:06 AM PDT by Pelham
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