News for hackers. Stuff that matters.

A comment on FDIC Auction for SVB Said to Be Underway, Final Bids Due Sunday. Parent comment

Re:FDIC Auction for SVB Said to Be Underway, Final Bids Due ... by dragontamer on Sunday March 12, 2023 @08:21PM (#35128767)
The US Treasuries, like 10Y and 30Y, trade on the basis like you describe.

All you gotta do is put a dollar value on it, which is actually relatively easy. Just calculate the approximate worth of 2033 dollars vs 2023 dollars, and adjust the prices today to match your expectations.

There "is no risk" in US Treasuries because we're screwed if there are risks. (Aka, everyone ignores things like the Debt Ceiling debate).

[ Parent | on HN ]
Re:FDIC Auction for SVB Said to Be Underway, Final Bids Due ... by kgwgk on Sunday March 12, 2023 @09:21PM (#35129359)
Sure, but for many reasons (including taxes and other administrative issues) having two more-or-less-offsetting positions in completely different contexts is not the same as paying a debt.
[ Parent | on HN ]