The search for Silicon Valley Bank-style portfolios
Japanese investment outfits are similarly reliant on long-term bonds
The demise of Silicon Valley Bank had many causes. But at its heart was the institution’s bond portfolio, which plummeted in value as interest rates rose. Little surprise, then, that analysts and investors are scrambling to locate similar hoards elsewhere. One disconcerting finding lies in Japan. Investment institutions there have accumulated vast stocks of domestic and foreign long-maturity bonds.
This article appeared in the Finance & economics section of the print edition under the headline “Duration danger”
Finance & economics March 18th 2023
- How deep is the rot in America’s banking industry?
- For markets Silicon Valley Bank’s demise signals a painful new phase
- The search for Silicon Valley Bank-style portfolios
- What the loss of Silicon Valley Bank means for Silicon Valley
- Credit Suisse faces share-price turbulence, as fear sweeps the market
- Is the global investment boom turning to bust?
- The Fed smothers capitalism in an attempt to save it
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