[lazide]

Eh, I think they’re pointing out that insurance companies (or counterparties to swaps and similar) try to not be so dumb as price insurance for something that will definitely happen at less than the cost of the thing that will definitely happen.

If the value of these bonds was almost certainly going to drop 10% (say), and that was going to be $x billion - then it’s not like SVB was going to find some way to hedge that and only spend $x million on it once that became obvious. Which by 2022 it was obvious.