Why Would Silicon Valley Bank Buy 10-Year Treasury Bonds Near The Top Of The Market?
The Financial Samurai Podcast
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Why Wouldn't Silicon Valley Bank Better Match Durability?
Silicon Valley Bank bought 10-year treasuries with its depositors' money. The bank thought, well, let's invest in this duration to make more money. When rates rise aggressively, bond values decline. And if you have to sell those treasury bonds before maturity, you're going to lose money.
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