Re:Startups that use Silicon Valley Bank are freaking out ov...
by andsoitis on Saturday March 11, 2023 @10:46AM
(#35109229)
>They got burned by being too conservative and investing in government backed securities.
Just because one is conservative, does not automatically mean one is not taking on risk.
In banking, interest rate risk is the exposure of a bank’s current or future earnings and capital to adverse changes in market rates.
If they put all their money into govt backed securities, they also took on portfolio risk.
Just because one is conservative, does not automatically mean one is not taking on risk.
In banking, interest rate risk is the exposure of a bank’s current or future earnings and capital to adverse changes in market rates. If they put all their money into govt backed securities, they also took on portfolio risk.