[Mistletoe]

With this place the majority were over 250k. Something like 97% or something. It was a big bank for businesses. Why they were bizarrely keeping such large sums in one bank account I don’t understand. Roku had almost $500 million there.

[rapsey]

SVB claimed the money is in treasury bills not just cash in the account. Which is a completely sensible place to put it.

[tsimionescu]

Apparently much of the money was in long-term treasury bills, which is only perfectly sensible if you believe you will not have to access that money for 5-10 years.

[chipgap98]

No it isn’t. You’re exposing yourself to interest rate risk when doing that

[ehzy]

Not in any meaningful sense if you are only looking to park the money safely and hold to maturity.

Buying 3 month T bills won't pay much, but it will pay more than the interest SVB pays on your checking account balance and importantly is backed by the full faith and credit of the us govt.

[Kephael]

Yeah, you can short eurodollars or maybe something else to hedge risk. At a certain point, you need to be sophisticated enough to manage your funds.