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What mistake did SVB make?

User Caution
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2 Answers

4 votes

Answer:

Step-by-step explanation:

pointssorry

User Psiyumm
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By loading up on long-term bonds, SVB had taken an enormous unhedged bet on interest rates staying low. That bet went wrong, leaving the bank insolvent (or near enough). The fact that shareholders have been wiped out and bondholders will take big losses is not a failure of the financial system.
User Juan De La Torre
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