[ves]

The liabilities are the same currency and the same amount in 2023 and 2033. They’re solvent.

The asterisk is that the liabilities are generating interest, but this is fine because (one very safely assumes) that’s covered by the interest on the long-duration assets SVB bought.

[oldgradstudent]

Interest rates have risen since those long-duration assets were purchased.

Depositors now expect higher interest rates which cannot be covered by those assets. They will withdraw their deposits and move them to a bank that can offer higher interest rates.

[ves]

right, which is why this is a liquidity problem and not a solvency one. The assets cover the liabilities--you just have to wait ten years or whatever.