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Politics : Politics for Pros- moderated
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To: DMaA who wrote (778808)3/11/2023 2:44:02 PM
From: teevee   of 793552
 
Do these strategies ever anticipate the possibility of a bank run?


If it is the banks, they should be managing the amount of risk, and in the case of treasuries, using hedges to mitigate interest rate and evaluating counter party risks. For counter parties, who take on interest rate risk, it depends on when they took on the risk, and where in the interest rate cycle. I am not sure how they cover their arses, other than only do so near the end of a rate hiking cycle, and hope for interest rate declines.
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