>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)
>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