COMMENTARY / World

Don't make the same mistake as SVB with your 401(k)

Your risk depends on the type of bond and what you need the money for

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. | GETTY IMAGES

By Allison Schrager
Bloomberg

Mar 22, 2023

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.

But knowing what makes an asset safe is not always so simple, and it will differ based on circumstances. Odds are you have the wrong safe asset in your retirement portfolio right now.

Don't make the same mistake as SVB with your 401(k)

Your risk depends on the type of bond and what you need the money for

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