Yes, but you also need to look at the net present value. A loan today would need to be at below market rate interest in order to match up with the value of the bonds held to maturity.
Interest rates rising means products with a fixed rate yield are worth less today. That value isn't gotten back by waiting until maturity. The nominal value is retrieved, yes, but the money in the future is literally worth less.
SVB was very poorly run. We can see that easily now in retrospect.
Interest rates rising means products with a fixed rate yield are worth less today. That value isn't gotten back by waiting until maturity. The nominal value is retrieved, yes, but the money in the future is literally worth less.
SVB was very poorly run. We can see that easily now in retrospect.