Hacker News Reader

Bank run was triggered by extremely poor investment decisions of SVB and not by people acting on that public information.

Given the economic factors + SVB's deposit base, what should they have done differently?

bought bonds with 1y maturity and not 10y

Or simply laddered their maturities to blend a lower average duration.

Pretty crazy that the GIC savings strategy we teach kids in junior high might have mitigated this.

I mean if I knew interest rates were gonna go high all the way back in 2021, then why didn’t SVB?

Oh right cause they didn’t have a CRO.

They bought one of the worst assets you could’ve in that time frame. MBSes with barely any interest and long maturity times.