(PB) >>18488175
That's a Risk On trade not a Risk Off trade. Not what a bank should be doing with OPM. Reminds me of LTC. Read this.
>>>18488119 (You)
>Read Jeff's posts on it::
>https://jeffreycarter.substack.com/p/total-mismanagement-of-silicon-valley
>https://jeffreycarter.substack.com/p/to-hedge-or-not-to-hedge
>Jeff is good, but SIVB had a swap on, which sort of a hedge, unless BOTH legs drop on you, which is likely what happened. The downside, as an off balance sheet trade, it's not necessarily reportable, under California bank charter, as SIVB was. Plus, a swap is a private contract between two parties, and is definitely NOT a registered security. No clue what the margining terms were in that contract.
>Nor is it known just who the counterparty might be. They have a problem too.