I worked in bank liquidity and treasury for the better part of the last decade, and there is one very interesting risk factor from the SVB collapse that I do not think we have ever witnessed before in modern finance, a π§΅:
The fed minutes came out in January 3 of 2022 announcing QT and professional investors realized that the bond market was never going to be the same. SIVB was at 688 and the bond portfolio had virtually no losses. Imagine the arrogance of management at that moment. They could have hedged