Silicon Valley Bank’s collapse has raised questions about risk management practices, particularly concerning interest rate risk. The bank, along with others, appears to have been insufficiently attuned to the potential impact of rising interest rates. Several analysts suggest that established habits, developed during a period of historically low interest rates, contributed to the vulnerability.

The Wall Street Journal reported that the bank’s exposure to long-dated securities was not adequately managed as rates increased. The situation highlights a broader concern about how institutions assessed and responded to evolving interest rate environments.

Topics: #not #interest #wsj

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