Re:FDIC Establishes Signature Bridge Bank, N.A., As Successo...
by basch on Monday March 13, 2023 @03:10AM
(#35132187)
Why is it a solvency crisis? The 10 year bonds, if held to maturity, cover the assets, no? It’s that they can’t offload the bonds in the current environment because there are more attractive bonds of the same duration.
All of these assets and accounts have to look extremely attractive to the largest institutions that can absorb them without increasing the risk to their own books.
All of these assets and accounts have to look extremely attractive to the largest institutions that can absorb them without increasing the risk to their own books.