btccyberhornet on Nostr: Usually banks will hedge their bond portfolio by taking an insurance against that ...
Usually banks will hedge their bond portfolio by taking an insurance against that portfolio in case rates go up. In this case, SVB didn't do that. Major banks would hedge their portfolio at all times. But then again the big 4 knows the Fed would always back them, so they probably get away buying less than they would need.
Published at
2023-03-17 21:38:14Event JSON
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"content": "Usually banks will hedge their bond portfolio by taking an insurance against that portfolio in case rates go up. In this case, SVB didn't do that. Major banks would hedge their portfolio at all times. But then again the big 4 knows the Fed would always back them, so they probably get away buying less than they would need.",
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