Treasuries aren’t always the safest asset in your portfolio. Your risk depends on the type of bond and what you need the money for.
The poor risk management at Silicon Valley Bank is stunning. But what went wrong is actually pretty common. There is often confusion about what makes a safe asset versus a risky one, and guessing wrong is often at the core of financial blow-ups. Safe assets, as we properly define them, are the backbone of financial markets; they are how we price and measure risk.
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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