Interest is going up and let's buy some bond?
I have no idea what Silicon Valley Bank was thinking: Interest rate is going up, so let's lock in some long term bond so that it goes down in value? What was it about?
Most businesses look to recoupon their bond portfolio at higher rates in this interest environment. Or do pay fixed receive floating interest rate swaps as the fed rate increases⌠I didnât look at Silicon Valleyâs financial statements. Thatâs the general strategy tho
They prioritized DEI over competent people.
Dumb take, Google has a DEI program no?
Idiotic WSJ op ed take. That guy is a clown.
The fed told everyone there would be no interest hikes until 2024. The fact that a bunch of unelected clowns have the power to crash the economy is crazy.
2024 still wouldnât have saved their 10 year bonds
"I always say that in investing you want to buy stock in a company that has a business that's so good that an idiot can run it, because sooner or later one will." Warren Buffett
Didnt you hear every time talking heads saying Fed won't be able to hike beyond 2% then 3% then 4% and now 5%. SVB bought the bonds at 2% and was calling Fed's bluff.
so they just decided to go "All in"? Did they just come back from yesterday night's poker game?
All the banks do it this way. SVB had two issues, it did not buy the hedge against those bond declines and another did not anticipate VC drought.
Rate hike was unexpected for them because they didnât hear UWOM24 beating the drums that it was coming.
I am so disappointed at our asset risk management team. Wtf were they doing??
Do you guys still have jobs?
Wasn't your risk management director position left unfilled since last June?