US treasury bonds are an eminently safe investment, backed by the full faith and credit of the US government. That’s a good thing, right? It wasn’t for Silicon Valley Bank (SVB). T-bonds weren’t the primary cause of SVB’s collapse, but these long-term securities played a part. A Wall Street Journal video.
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Short link: https://wp.me/p6sb6-Dw0
Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.
Stocks, bonds, and …Lego bricks. That’s the investment portfolio for some. A Wall Street Journal video by Adam Adada.
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Short link: https://wp.me/p6sb6-Dor
Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.
The Securities and Exchange Commission (SEC) charged Goldman Sachs with defrauding investors with a collateralized debt obligation (CDO) based on subprime mortgages. Goldman failed to disclose that it structured these unregulated instruments in partnership with a hedge fund that was also shorting these securities — betting against them. The CDOs failed to the tune of $1 billion, and investors and bond insurer MBIA were stuck holding the bag. Goldman made $15 million on the deal; the hedge fund made $1 billion when the CDOs went bad.
NotionsCapital 