Rising rates mean Treasurys are worth less. That's putting pressure on banks - marketplace.org
Rising rates mean Treasurys are worth less. That's putting pressure on banks - marketplace.org
Source: marketplace.org
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DW NOTE
The Fed just raised rates into a supply shock while banks sit on bond portfolios marked at pre-hike prices. The 10-year yield is at 5.01%, up 24% year-over-year. Every basis point higher turns more of those "hold-to-maturity" Treasurys into unrealised losses that disappear the moment a depositor wants their money back. This is how SVB happened, except now it's policy.