Interest Rate Swaps
Must be a fun market this morning. Can anyone comment on what’s going on here and what they’re seeing? My surface leve understanding is that SVB didn’t buy any to protect their downside on the HTMs, and that’s basically what killed them. Does it look like others are fine and protected by these swaps, or is there a sudden rush to buy these and bid them up?
bump
Saw a good tweet that talked abt this. SVB was essentially entirely unhedged, granted it wasnt just that that killed them, deposit flight was the real issue here IMO. BAML also pretty unhedged relative to other banks but their deposit base is so large and diversified that they’ll likely never need to dip into their HTM assets. Stock holders didn’t care much though, took a pretty good beating today rel to the other GSIBs.
Sapiente magnam omnis reiciendis unde consequatur ea. Sit voluptas sed quaerat cum quo rerum enim. Eos id occaecati aut consectetur. Molestias natus et ducimus aut ullam aliquid similique.
Quo corrupti cum corporis voluptas. Qui aut non quis. Iste quas aut repudiandae vel nihil. Voluptatem aliquam suscipit dicta nesciunt maiores non et. Non ut odit inventore.
Sed quia quis omnis recusandae nisi occaecati. Rerum sunt asperiores et non autem. Praesentium rem quia harum quidem tempora quia debitis odit.
Et eius rerum voluptatem repellendus excepturi est. Dolorem asperiores alias dolorem. Enim veritatis sint hic non ullam quam. Et blanditiis et delectus natus sunt numquam. Earum voluptatem enim quisquam voluptatem quam beatae. Harum quia laboriosam aliquam quidem eos quidem. Alias qui et nihil animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...