When Silicon Valley Bank was flooded with billions of new deposits in 2021, it chose to invest a significant portion of them in long-dated treasury and agency notes. What were the other options available and the trade-offs among these possible choices? Why did SVB's management decide to invest heavily in long-dated government securities and choose not to hedge against interest rate fluctuations? What role did accounting policy play in the decision-making process?

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Alternatives to SVBs Investment Strategy in 2021 When Silicon Valley Bank SVB received a large influx of deposits in 2021 they opted for longdated Treasuries and agency notes Heres a breakdown of some ... View the full answer