>This is not a liquidity issue as long as SVB maintains their deposits as they are earning ~1.56% on these deposits and the MBS has not gone bust (like in 2008) By Abhay On March 10, 2023 In Twitter [Microblog] >This is not a liquidity issue as long as SVB maintains their deposits as they are earning ~1.56% on these deposits and the MBS has not gone bust (like in 2008) — Abhay 🇸🇬🇮🇳 (@Abhay08) March 10, 2023 Previous depositors would want to have better returns on their monies as they have to prep for longer runways with the last round with the constant narrative of ‘2024 is going to be worst than 2023′ Next >97% of these MBS were 10+ year duration with average yield of 1.56% >with FED’s interest rate of ~4.5% and increasing in 2023 > customers with deposits who were earning little less than 1.56% (bank spread) can now purchase govt backed sec with >4.5% yield
