>notionally hedged against
on paper, SVB had protection from...
>...interest-rate duration risk
the danger that rising interest rates would mean it lost money on long term bonds at the historic (low) rate...
>...by this hold-to-maturity strategy,
using a common financial technique that valued the assets in question at their final value, not their current market value...
>that strategy put those assets outside the circle of those available to meet unexpected withdrawals
however, doing so meant those bonds weren't available if they needed immediate cash
>notionally hedged against
on paper, SVB had protection from...
>...interest-rate duration risk
the danger that rising interest rates would mean it lost money on long term bonds at the historic (low) rate...
>...by this hold-to-maturity strategy,
using a common financial technique that valued the assets in question at their final value, not their current market value...
>that strategy put those assets outside the circle of those available to meet unexpected withdrawals
however, doing so meant those bonds weren't available if they needed immediate cash