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lscharen | 3 years ago

If SVB were originating mortgages then, yes, that should have helped because then, like every other originator, they would have immediately sold the mortgage into the secondary market where it would be turned into a Mortgage-Backed Security and SVB would have cash on-hand and unloaded the long-duration risk.

Instead, they were the ones buying the MBSs and taking on the long-duration risk.

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