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How to Hedge Your Interest Rate Risk
CNN's John Avlon says Silicon Valley banks took big losses on their books. He says they should have hedged interest rate risk immediately having that much capital. Instead, he says, the only thing they could do is lock in a loss when rates start ticking up higher. Avlon: They can either sell those assets and take a loss or borrow against them. There's nothing they could do except sell them down and then you had enough depositors to ask for their money back.