Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

There are some big parts to this story we don't know.

Yes, they sold the treasuries and took a bath. But if that was their best option, it speaks very poorly to the other "assets" they held on their balance sheet.

We may find out in the coming days that they had a big position in Silvergate, which went bankrupt yesterday, and they had to mark their position to zero, creating the need for liquidity.



I heard elsewhere they were extending loans to startups with pre-IPO shares as collateral, so yeah, that was their best option apparently.


Something like 60% of their assets were these bonds in December. They very well may have seen the other 40% withdrawn already by startups that can't raise anymore leaving them with this pile of 10 year 1.5% bonds.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: