It’s not material.
What matters is that principal is returned in full when bonds mature, but if you can’t wait until maturity you might have to sell them for less than the principal. That is exactly what happened to SVB.
What matters is that principal is returned in full when bonds mature, but if you can’t wait until maturity you might have to sell them for less than the principal. That is exactly what happened to SVB.
What's stopping my Local Bank from crashing this week?
Enough consumer confidence to prevent a bank run is the only thing that prevents a run on any bank, including the largest banks in the world.