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0 pointsjpmattia3y ago0 comments

> This is a liquidity problem (so far).

How is that known currently? Edit: As opposed to a solvency problem?

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nemo44x3y ago

Because they sold long term bonds for a huge loss so they could create liquidity.

jpmattiaOP3y ago

I meant as opposed to a solvency problem (edited above.)

RC_ITR3y ago

You can look at page 19 of [0] and make a call for yourself.

What we know happened is that they sold US treasuries for less than they paid. They did this because people withdrew money faster than they expected.

If that has an impact on their loan book (mostly loans to investors), at the very least, that line of connection has not yet been drawn.

[0]https://s201.q4cdn.com/589201576/files/doc_financials/2022/q...

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