Re:Joint Statement by the Department of the Treasury, Federa...
by acjacobson on Monday March 13, 2023 @05:22AM
(#35133144)
Only a potential buyer would lose. Not SVB - for them the price and return is locked if they can wait. The problem comes when they are forced to sell (as they were).
This is why the bond price falls - an outside party will not buy the SVB bonds because they can get a better return on a different bond. The bond price falls to make them equivalent.
This is why the bond price falls - an outside party will not buy the SVB bonds because they can get a better return on a different bond. The bond price falls to make them equivalent.