America’s banks are missing hundreds of billions of dollars

Re:America’s banks are missing hundreds of billions of dollars by User23 on Wednesday March 22, 2023 @01:42AM (#35257255)

> Of course the flaw in this story is that the interest rate risk should have been hedged, and it wasn’t.

How does the banking sector in aggregate hedge its interest rate risk exactly? They have to find a net counterparty outside the sector who wants exposure to interest rate risk. Who exactly would that be at sufficient scale to protect trillions in deposits?

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Re:America’s banks are missing hundreds of billions of dollars by taeric on Wednesday March 22, 2023 @02:42AM (#35257608)

I'm also interested in this answer. I've seen running credit cards?

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Re:America’s banks are missing hundreds of billions of dollars by lordnacho on Wednesday March 22, 2023 @02:54AM (#35257693)

Speculators aka hedge funds.

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Re:America’s banks are missing hundreds of billions of dollars by quickthrower2 on Wednesday March 22, 2023 @02:57AM (#35257706)

Damn is no one gonna pay for the free lunch?

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Re:America’s banks are missing hundreds of billions of dollars by balderdash on Wednesday March 22, 2023 @10:22AM (#35261443)

It’s probably easier to think of who wants long duration risk, and I think the answer is 1. Speculators (who like the volatility/convexity) 2. Pension funds (they have very long dated liabilities, and so potentially want to increase the duration of their portfolio)

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