we're they specifically unsophisticated in the way they bought treasuries/other bonds? One could look at the zero risk weighting of treasuries and buy only those to satisfy capital requirements, but you'd think it would be obvious that you would end up with more exposure to interest rate risk than is prudent. Or is this truly such an improbable swing in interest rates coupled with demand for withdrawals that it is reasonable that they aren't expected to anticipate it ?
quickthrowman|3 years ago