22min chapter

The Compound and Friends cover image

The Credit Crunch Is Just Beginning

The Compound and Friends

CHAPTER

Held to Maturity Securities and Banking Risks

This chapter explores the concept of held to maturity securities and argues that it is not a strong enough argument to ensure safety in the banking system. It discusses the fundamental mismatch of maturity and the importance of accurately marking illiquid assets. The chapter also highlights the differences in approach between Bank of America and JP Morgan during the pandemic.

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