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A comment on US banks have $620B of unrealized losses on their books. Parent comment

Re:US banks have $620B of unrealized losses on their books by prottog on Friday March 31, 2023 @02:11PM (#35390958)
> (why would you lend money for 10 years at 3.5% when you can lend money for 3650 successive 1-day terms at 4.75%?)

That's the thing, you can't know that. Rates could go up, down, sideways, or in circles over the next 10 years. A 10-year bond locks it in to a predictable rate and payment schedule.

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Re:US banks have $620B of unrealized losses on their books by nostrademons on Friday March 31, 2023 @05:27PM (#35393911)
You can't, but the narrative presented for why rates will go down is that there will be a financial crisis that forces the Fed to drop rates. How can you simultaneously assume there will not be a financial crisis that wipes out a large number of financial institutions under those premises?
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