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A comment on FDIC Takes over Silicon Valley Bank. Parent comment

Re:FDIC Takes over Silicon Valley Bank by runeks on Saturday March 11, 2023 @11:07AM (#35109489)
> They should have been rebalancing.

How would that have helped?

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Re:FDIC Takes over Silicon Valley Bank by shawabawa3 on Saturday March 11, 2023 @02:11PM (#35111540)
Say they have 90B deposits and 100B in long term treasuries

Once that 100B falls to 95B due to interest rate hikes they could sell them all and buy 95B of short term treasuries instead, insulating them from any further rate hikes

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Re:FDIC Takes over Silicon Valley Bank by namtab00 on Saturday March 11, 2023 @05:28PM (#35113453)
They would sell 95B of 10-year MBSs, but ho would buy them?
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Re:FDIC Takes over Silicon Valley Bank by runeks on Sunday March 12, 2023 @12:42PM (#35122385)
Other banks will buy them at the right price (ie. less than what SVB paid initially).
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Re:FDIC Takes over Silicon Valley Bank by runeks on Sunday March 12, 2023 @12:42PM (#35122374)
How is that different from just buying short term treasuries, instead of long term, in the first place?
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Re:FDIC Takes over Silicon Valley Bank by shawabawa3 on Sunday March 12, 2023 @02:11PM (#35123869)
If rates don't go up then you get better yield with long term treasuries
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