Will The Fed Get Their Soft Landing? | Weekly Round Up
Supply Shock
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Silicon Valley Bank's $100 Billion Paper Loss After Big Bet in the Bond Market
Bank of America is one of the largest money centers in the world. If you have hundreds of billions of dollars flooding into your bank from March 2020 to probably, you know, the end of 2021, you're going to have to put that money somewhere. Bank means that they're kind of making a wager bet, a speculation about whether interest rates are going to go up or down. But Silicon Valley Bank did not really make a wager. They just had a huge influx of deposits. And they managed their asset liabilities really poorly but it wasn't some sort of windfall by owning agency mortgage by securities with a coupon of 2.5. So much of the banking business is based on
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