6min chapter

Bankless cover image

The U.S. Banking System, Federal Reserve, & USDC Post-SVB Collapse with Ram Ahluwalia

Bankless

CHAPTER

The Unwind of Carry Trades

Banks are borrowing short and lending long. The expectation is that they borrow at a very low interest rate. An inverted yield curve is actually when you are paid to take less time. What's happening is it creating a $600, $700 billion unrealized loss across the banking sector because those banks are underwater.

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