Gilley :
nope markets about to go back to highs on a onslaught of bad news and inflation rising again its almost criminal to see gains like this cause one corrupt fed opened his mouth talking out his ass
72734102 :
Bond rates can’t compete with doubling your investment such as Tesla stock! That could go to $800 in one or two years. Thanks! But no thanks
Cow Moo-neyOPtoomanyscammers:
SVB collapse is because their customer base are those tech start ups. It all started from Fed raising the interest rates, making tech start up business cost to go up. As a result, they need to withdraw money from SVB. And SVB had to look for money to meet these withdrawals as they don’t have enough cash on hand. So what they did was to sell their treasury bonds on hand at a loss. Why loss? Because their portfolio of yield is only 1%+, but the current yield is like close to 4%. As a result, they have to realise a loss. Bu then, even by selling these bonds, they stil don’t have enough cash. So what they did next is to announce that they need to start selling their stocks to fund the withdrawals. This news then spook investors and firms who had money with SVB. So everyone either start selling stocks or start withdrawing their money from the bank. The former caused the stock to crash, while the latter caused a bank run
toomanyscammers :
is it cos they bought those bonds before the yields got up and so locked in yields at a lower rate but when they sold it ,their prices already dropped since price and yield move inversely?
We are currently facing a phenomenon known as yield curve inversion. What this means? Let’s start by explaining what the yield is, before talking about its inversion. The yield is the interest rate at which bonds are being issued. The “yield” in yield curve inversion refers to the US Treasury Yield, which reflects the effective rate at which the US government is borrowing money. The "curve" refers to the curved line you see when you plot a graph of intrrest rate vs maturi...
calm Flamingo_6328 : The traitor hat is late but it's arrived