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A comment on What does Silicon Valley Bank’s collapse mean for the financial system?. Parent comment

Re:What does Silicon Valley Bank’s collapse mean for the fin... by TheAlchemist on Friday March 10, 2023 @08:32PM (#35104102)
Funnily enough, the root cause of the problem for SVP are ... mortgage backed securities !
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Re:What does Silicon Valley Bank’s collapse mean for the fin... by giantrobot on Friday March 10, 2023 @09:04PM (#35104340)
So you're saying I should invest heavily into mortgage backed securities? Got it!
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Re:What does Silicon Valley Bank’s collapse mean for the fin... by hedora on Friday March 10, 2023 @10:17PM (#35104842)
Buy low! Now’s your chance!
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Re:What does Silicon Valley Bank’s collapse mean for the fin... by mcarmichael on Friday March 10, 2023 @10:57PM (#35105119)
The really troublesome securities of the Global Financial Crisis were complex derivatives of private-label, almost universally sub-prime, asset-backed-securities:

https://en.wikipedia.org/wiki/Collateralized_debt_obligation

The standardized, so-called "agency" MBS on the SVB books really isn't anything like that CDO plague. In 2008, people were losing faith in the ability to even assign valuations to CDOs; SVB's problem with their MBS portfolio is that the current market valuation is obviously not what they needed it to be just now.

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