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by rr808 1193 days ago
Are you sure that is the problem? I see lots of comment today they lost a lot of money on long dated treasuries. Which is "safest" asset.
1 comments
dragontamer 1193 days ago
No.

My money market fund (VMFXX) is composed of Fed Repo notes with 13 _DAYS_ of maturity average (https://investor.vanguard.com/investment-products/mutual-fun...)

A bank holding customer deposits in lol 30 _Year_ or 10 _YEAR_ treasuries is anything but safe. That's called duration risk, and congrats, they just got burned by duration risk.

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rr808 1193 days ago
Sure, what I meant was Basel rules mark treasuries as level 1 capital. So Basel doesn't have much to do with it, as the OP suggested.
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wpietri 1193 days ago
Are you sure? The article says, "short-term Treasury bills get 100-per-cent weightings", implying that longer term ones would get something else.
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