- May 22, 2004
- Favorite Player
10 years of FIF
Most of these assets are hold to maturity those losses dont matter unless you have a bank run and have to sell....SVB is definitely the most culpable due to their inability to match long duration assets with short term liabilities - no doubt. But why is every bank in the world carrying giant unrealized losses on their bond portfolios? It's because they're required by regulators to hold these investments in "safer" assets, the value of which has tanked because of all the easy money that was circulating in 2020 and 2021.
Blaming regulators is fucken ridiculose......only thing you could blame em for is rolling back some of the dodd frank cause leaving them in place would have avoided all of this...
Also in a raising intrest rates environnemnent banks are gonna carry unrrlized losses no matter what... kind of the nature of bankingm