N
Net Interest
netinterest.co · Group blog · on HN since 2021
Net Interest is Marc Rubinstein's newsletter on banks, financial services, and the history and mechanics of the finance industry.
What HN saysHN commenters cite his Silicon Valley Bank analysis for its math on the bank's bond holdings and call his articles on finance educational.
17HN people shared it
8linked it in comments
13stories submitted
19story points
1 year agolast shared
2021people per year2026
Most-shared posts
- 1The Demise of Silicon Valley Bank7 people · 3 points · first shared 2023 · discussion on HN
- 2Banks in Disguise1 people · 3 points · first shared 2024 · discussion on HN
- 3Free Trades1 people · 2 points · first shared 2021 · discussion on HN
- 4Dotcom 2.01 people · 2 points · first shared 2022 · discussion on HN
- 5The Financialisation of Art1 people · 2 points · first shared 2021 · discussion on HN
- 6The Demise of Credit Suisse1 people · 1 points · first shared 2023 · discussion on HN
- 7Paytm from Idea to IPO1 people · 1 points · first shared 2021 · discussion on HN
- 8The Quest for Monopoly1 people · 1 points · first shared 2021 · discussion on HN
- 9So You Want to Launch a Hedge Fund?1 people · 1 points · first shared 2023 · discussion on HN
- 10Marc Rubinstein: Worldpay Reborn1 people · 1 points · first shared 2023 · discussion on HN
- 11The Secret Diary of a Bank Analyst1 people · 1 points · first shared 2023 · discussion on HN
- 12Financial Advisors: Guardians of the Rich1 people · 1 points · first shared 2023 · discussion on HN
- 13Paying faster 99d1 people · first shared 2022
- 14Financing the american home1 people · first shared 2021
- 15Homepage1 people · first shared 2024
What HN people wrote when they linked it
hrpnk · 2024-10-28
Marc Rubinstein also has great educational articles on history and inner workings of the finance industry: https://www.netinterest.co/
brunooo · 2023-03-12
Good point, and obviously not a great time for SVB equity holders or EVE sensitivity regulation, but looking through their 10Ks or Marc Rubenstein’s great math yesterday at https://www.netinterest.co/p/the-demise-of-silicon-valley-bank also not that much worse than Goldman at some points in 2008.
Not great, not terrible as they say, but aside from a couple of very niche specialists no bank on the planet would survive getting 25% of deposits pulled in a day.
kqr2 · 2023-03-11
I think he prefers cycling:
https://www.netinterest.co/p/the-demise-of-silicon-valley-bank
“When you’re not working, what do you do to de-stress?”
That was the last question Greg Becker, CEO of Silicon Valley Bank, fielded at an investor conference on Tuesday this week.
“Cycling is my advice,” he replied. “Living in Northern California and being on the peninsula. That’s just—I think it’s the best bike-riding cycling in the world, period.”
Three days later, Becker’s bank is in receivership
mertd · 2023-03-13
They had too much MBS with average maturity of 6+ years. T bills by definition mature in a year or less. T bills, if they had any, weren't the problem.
https://www.netinterest.co/p/the-demise-of-silicon-valley-bank
gruez · 2023-03-12
>As far as I understand, the nominal value of assets still exceeds the obligations?
AFAIK that number was based on the book value (ie. how much it cost for the bank to buy the bonds/MBS), not the current fair market value. Other sources say that SVB is in the hole when using current fair market value for their assets.
>So big was this drawdown that on a marked-to-market basis, Silicon Valley Bank was technically insolvent at the end of September. Its $15.9 billion of HTM mark-to-market losses completely subsumed the $11.8 billion of tangible common equity that supported the bank’s balance sheet.
https://www.netinterest.co/p/the-demise-of-silicon-valley-bank
dannyw · 2023-03-12
Nearly all? Their "held to maturity" portfolio was down 17% as of year-end 2022.
Source: https://www.netinterest.co/p/the-demise-of-silicon-valley-bank
hobo_mark · 2022-05-16
Also, Marc Rubinstein covered Pix in his newsletter some time ago https://www.netinterest.co/p/paying-faster-99d.
forgingahead · 2021-08-24
Sure, fixed term for a short period is normal everywhere. But a fixed term for the entire length of the mortgage, whereby mortgage terms are commonly 30 years long, are only seen in the US and Denmark.
Here's some more detail on this: https://www.netinterest.co/p/financing-the-american-home