41–50 of 87 posts
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[1] https://archive.is/yH1A5
Silvergate’s assets are real boring normal stuff Their safe, boring assets weren't safe and boring enough. Why can't there be a bank like this that just keeps your cash as cash?
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That TLT story is being severely under-reported.
TLTs value went down because yields went up. This is by design, anyone who invested in TLT at zero rates should have known the yields to price function. Honestly i dont see whats to hide here in reporting ?? Can you explain what am i missing here ?
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TLTs value went down because yields went up. This is by design, anyone who invested in TLT at zero rates should have known the yields to price function. Honestly i dont see whats to hide here in reporting ?? Can you explain what am i missing here ?
You’re not missing anything. If you invested in mid to long duration bonds right before the Fed started rocketing rates, you had a bad time.
I invest in treasuries when interests are high or gonna stay high. If i see us hitting a recession in coming year, i keep mostly cash and start piling into treasuries over each hike cycle until at least the central banks start cutting rates and keep riding the treasuries till rates keep moving down.
Or in other words, dont fight the fed
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Heh, cstross even has a "conspiracy" theory about that sudden shift: https://www.antipope.org/charlie/blog-static/2023/02/place-y... (Which I don't buy)
It takes about 5 minutes playing with ChatGPT to realize it has real time saving value, seems like author hasn't really tried to use it in their work. While I agree there is a hype bubble forming, I disagree with the premise that it only produces garbage.
Right now I can basically ask my home assistant "what's the time/weather" and "play some music". Anything else returns "i don't understand".
I can see ChatGPT has huge potential here to give at least somewhat sane voice assistant responses.
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[1] https://archive.is/yH1A5
Silvergate’s assets are real boring normal stuff Their safe, boring assets weren't safe and boring enough. Why can't there be a bank like this that just keeps your cash as cash?
Many banks do put customer funds into T-Bills, or park it with the Fed at the fed funds rate. Both of which are 0 risk and effectively instantly redeemable. And this is still highly profitable right now, if you offer customers yields below fed funds rate (~5%), the money on the spread is risk free.
Pretty much every crypto adjacent firm has decided to take excessive risk with customer deposits to skim some off the top instead
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There will be other banks and onramps. There was a time before those two banks. And there are many more institutions open to the business now.
What about recent events would suggest more institutions wanting to get a piece of this action? I'm not being snarky, I'm trying to figure out where banking is going to come from now. Cobbled together small players, is that what it looks like?
Silvergate's stress came from holding normal super boring bonds and needing to liquidate those, it needed to liquidate because of the mismanaged crypto organizations, but its ability to liquidate came from its own portfolio choices during a coincidental macroeconomic environment and not crypto.
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[1] https://archive.is/yH1A5
Silvergate’s assets are real boring normal stuff Their safe, boring assets weren't safe and boring enough. Why can't there be a bank like this that just keeps your cash as cash?
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More to the point, Silvergate was one of exactly two banks serving crypto companies in the US. The other, Signature Bank, is also under a lot of regulatory pressure and it has already cut off eg. Binance and Kraken.
There will be other banks and onramps. There was a time before those two banks. And there are many more institutions open to the business now.