Silicon Valley Bank's Solution to Maturity Mismatch

On demand deposits can only go into assets that are able to be liquidated at market value at any time. If you give the bank your money for a year and then they know, hey, I have to give this back in a year, they can do whatever they want with it during that year as long as they'll be able to produce what they promised at the end of that year. So there's no maturity transformation there because there's no mismatch with the timing. And so there's no risk of you coming before they were expecting to get your money back. With a SOPHIE mortgage loan, you can save now and save later, helping to relieve the anxieties of the