Re:Fed Guy: SVB was particularly poorly run
by aeternum on Monday March 20, 2023 @03:31PM
(#35237314)
Just as a doctor needs to buy the right amount of malpractice insurance, the banks need to size the hedge properly.
SVB did have other investments and some hedge. One of the core issues is that the Fed raised rates faster than any time in history and starting from some of the lowest interest rates in history. That's very difficult to predict and hedge against.
SVB did have other investments and some hedge. One of the core issues is that the Fed raised rates faster than any time in history and starting from some of the lowest interest rates in history. That's very difficult to predict and hedge against.