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0 pointsTrainedMonkey3y ago0 comments

Interest rates are already high, so whoever get the inflows can buy 3 months treasure notes to get the cake and eat it too.

There is still risk of interest rates rising significantly higher, but with 3 months treasure notes the downside is limited.

edit: typoed

0 comments

baq3y ago

The thing with interest rates is in high inflation you never know what high really is since high inflation itself is highly volatile.

I.e. don’t be SVB. Hire a risk officer.

slv773y ago

There is no need as they can just park the excess reserves with the Fed and earn a risk free rate with no duration risk.

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