May be nice for an acquirer. Roll those long term bonds into very short term treasuries - take that big loss now - and earn 4% going forward.
Rates will eventually top out - they just had made a very bad bet at 1.5%/10 yr.
Rates will eventually top out - they just had made a very bad bet at 1.5%/10 yr.
Rates are 5% now, so a spread of 3.5%. If rates go above 8.5% (which they were, from 1973 to 1992) then the acquirer is in basically same hole as SVB, no?