SVB collapse shows US treasuries aren’t a risk-free asset
Paul McCulley: “We always refer to Treasuries as the world’s safest asset. That’s from the standpoint of credit quality. That’s not from the standpoint of asset price stability. There’s a huge difference.” Treasuries posted their worst losses since at least the early 1970s. Another issue is liquidity. In the past month, it has been “significantly compromised.”

29 March 2023

Bloomberg