Crypto Voices
Crypto Voices
Matthew Mezinskis
PE44: Why are banks failing?
28 minutes Posted Mar 22, 2023 at 4:58 pm.
Intro
Bonds... and two charts!
How important is the bond market?
Importance of 10-year note
Components of a bond (Yield most important!)
YTM history of US Treasury 10-yr note
Bond price sensitivity chart
Price sensitivity of 10-yr note only
What happens when yields rise? Pain...
What happens when yields fall? Fun...
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28:15
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Show notes
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This is the forty-fourth video installment from Porkopolis Economics, covering macro and money, from the creator of the Crypto Voices podcast.
Contents
Here we look at the main reason why banks are struggling today, and in general: The prices of government bonds have fallen drastically in the last year, as bond yields (or interest rates) have risen. This is the main reason why banks like SVB and others are failing.
Remember, the price/value of bonds moves in the opposite direction of their yields/rates!
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Show content is not investment or financial advice in any way.