SVB collapse: Peter Thiel’s role scrutinized as spark of bank run

Re:SVB collapse: Peter Thiel’s role scrutinized as spark of ... by dragontamer on Monday March 13, 2023 @06:04PM (#35143624)

The 30Y bond was "declared" to be held-to-maturity, meaning you didn't have to book the paper-losses from the Fed Interest rate hikes / change in interest rates over the past year.

But of course, that ended up not being true, now was it? So it was only 'notionally' hedged, not truly hedged.

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Re:SVB collapse: Peter Thiel’s role scrutinized as spark of ... by mhb on Monday March 13, 2023 @06:12PM (#35143725)

Right, if hedging isn't necessary for those bonds then I guess one way of saying it is that they're "notionally hedged". Another is that they weren't hedged.

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Re:SVB collapse: Peter Thiel’s role scrutinized as spark of ... by dragontamer on Monday March 13, 2023 @06:19PM (#35143838)

Be that what it may, declaring some bonds to be "held to maturity" is common practice in banking.

However, for _these_ bonds, and so much of it, to be declared "held to maturity" is a mistake. There's always wiggleroom in how accountants add up the numbers. They messed up on this part.

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