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by TrainedMonkey 1193 days ago
Interest rates are already high, so whoever get the inflows can buy 3 months treasure notes to get the cake and eat it too.

There is still risk of interest rates rising significantly higher, but with 3 months treasure notes the downside is limited.

edit: typoed

2 comments

The thing with interest rates is in high inflation you never know what high really is since high inflation itself is highly volatile.

I.e. don’t be SVB. Hire a risk officer.

There is no need as they can just park the excess reserves with the Fed and earn a risk free rate with no duration risk.