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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 tomca32 on Saturday March 11, 2023 @01:24AM (#35106004)
What are you going to do with MBS that aggregated averaged a yield of 1.5% when anyone can get a risk free bond returning over 3% now? Who’s going to buy your mortgages?
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Re:What does Silicon Valley Bank’s collapse mean for the fin... by zamfi on Saturday March 11, 2023 @01:51AM (#35106123)
This didn't happen all of a sudden -- it took place over months! Sure, now it's a pickle, but it didn't turn into a pickle from one day to the next.
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Re:What does Silicon Valley Bank’s collapse mean for the fin... by hnfong on Sunday March 12, 2023 @03:38PM (#35125146)
You sell them at a discount of (duration * 3.x%-1.5%), so that the hold to maturity interest rate remains at the market rate of 3.x%
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