[wstuartcl]

yeah in that regard SVB also lost hundreds of billions on trades it could have made optimally in the market with those funds (looking with hindsight).

Should you look at the opportunity costs for lost potential gains in this scenario -- yeah. Does it "lose money" -- no, not unless you are forced to sell before maturity.

lost earnings are a wish for what could have been, not lost in reality.

[jojobas]

When you own a 1.5% 10-year and balance it against a 3% deposit your losses are very real and amount to 15%. If you don't offer 3% deposits you lose clients and your problem just got worse.