My understanding was they they were 10 year T notes @ ~1%, which is kind of where I get lost.
There are way better ways to "yield chase" than this, why are we presuming greed here when it seems just as likely to be incompetence?
There are way better ways to "yield chase" than this, why are we presuming greed here when it seems just as likely to be incompetence?
Such as what?
There are not, if you have $50-100B. Your options as a bank are either treasury bonds or mortgage-backed securities.
As a private sector investor (e.g. Warren Buffett) you have the additional option of equity investing, but it will take many years to move that much money.
If a doctor unknowingly took out your heart instead of your gall bladder, it may be incompetence but that's unlikely.