This is like saying you loaning me 50B for ten years is zero cost as long as you get it back at the end.
It ignores the fact that you have to come up with the money, and once you have it, you could put it somewhere with an actual return.
This is the exact reason SVB failed. Their 10 year investments were worth 70 cents on the dollar because there are better returns elsewhere.
https://twitter.com/torrenegra/status/1634573234187407369
Even their bad investment decisions wouldn't have killed them if there hadn't been a bank run.
Im pushing back on the specific idea that paying full price for an asset that is locked up for 10 years isn't a loss.
This is like saying you loaning me 50B for ten years is zero cost as long as you get it back at the end.
It ignores the fact that you have to come up with the money, and once you have it, you could put it somewhere with an actual return.
This is the exact reason SVB failed. Their 10 year investments were worth 70 cents on the dollar because there are better returns elsewhere.