On: Ask HN: How is the SVB situation affecting your st...

[orangepurple]

One of the biggest banks in the world failed to account for a capital management risk scenario where interest rates go up? Insane

[lotsofpulp → orangepurple]

Silicon Valley Bank was nowhere near one of the biggest banks in the world.

https://en.wikipedia.org/wiki/List_of_largest_banks

Not even amongst the largest banks in the US:

https://en.wikipedia.org/wiki/List_of_largest_banks_in_the_U...

[bgentry → lotsofpulp]

They're #18 on the US list you linked, I saw other articles saying they were #16 so it probably just depends on the date assets were measured.

[morelisp → bgentry]

The falloff is extremely rapid. They're closer in both an absolute and relative sense to the 40th than even the 10th.

[blitzar → orangepurple]

Practically every single bond - which banks effectively have to buy and hold for regulatory reasons - has reduced in mark-to-market value every single day the last 2 years.

Personally I think they are nuts for having (reportedly) such a long average duration of bonds in their portfolio, but they were also paying a pretty decent interest rate on savings to their customers - that money has to come from somewhere.