Michael Arougheti, President of Ares Management
The Walker Webcast
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Do You Think the Asset Liability Mismatch of SBB Is Isolated?
SBB got caught in that mismatch between the quality of the deposits, the concentration of the deposits and the balance sheet. The difference between SBB and some of the larger banks is the nuance between available for sale and whole to maturity accounting within the banking system. If you just start with the economics basically of long dated liabilities in a rapidly rising rate environment, the Fed itself is in a very challenging spot. And so maybe back to the Fed, which is why we're still in the early days of this, we just went from potential QT back to QE, right? Because once we start buying par secured, you know, lending is 80 cents securities a par, you're not back
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