Re:Tether Withdrawals Top $10B
by TuringNYC on Tuesday May 24, 2022 @06:01PM
(#31497994)
>> So if Tether had say, $50-billion in 10-to-30Y treasuries at the start of the year, they only have $45-billion of that now.
This is nuts - they dont and it wouldnt make any sense. You cant have a short term cash-equivalent backed with long-duration bonds. It would be a total asset-liability mismatch.
For reference:
T-bonds mature in 20 or 30 years and offer the highest interest payments bi-annually.
T-notes mature anywhere between two and 10 years, with bi-annual interest payments, but lower yields.
T-bills have the shortest maturity terms—from four weeks to one year.
Re:Tether Withdrawals Top $10B
by gkuan on Tuesday May 24, 2022 @09:19PM
(#31499545)
This (more yield with longer duration) is true most of the time, but sometimes the yield curve inverts. Especially in recent months, the yield curve has flattened quite a bit.
This is nuts - they dont and it wouldnt make any sense. You cant have a short term cash-equivalent backed with long-duration bonds. It would be a total asset-liability mismatch.
For reference:
T-bonds mature in 20 or 30 years and offer the highest interest payments bi-annually.
T-notes mature anywhere between two and 10 years, with bi-annual interest payments, but lower yields.
T-bills have the shortest maturity terms—from four weeks to one year.