What should SVB have done with interest rates started to go up? They had a lot of long term bonds then with lower interest rates, and they apparently had that surge of deposits, partly leading to them loading up with long term bonds. If they immediately sold some of the old ones, they'd have had some of the losses that sank them. They didn't know how far it was going to go on interest rates (each one adding to their potential threat). The strategy that would have worked better in retrospect would be buy more shorter term bonds, fewer longer term bonds - but then they'd have lower returns (as longer term bonds pay better). Was this an obvious problem they should have dealt with earlier, or was it impossible to foresee?