HE HELD FOURTEEN BILLION IN THIRTY-YEAR BONDS. THE RATE ROSE SEVEN TIMES IN ELEVEN MONTHS. HE CALLED IT POLICY-CONSISTENT.

In November 2021, a duration risk report stated that the portfolio’s current profile was consistent with policy, prior to a significant rise in interest rates. Just months later, Meridian Valley Bank faced a $24 billion market value loss due to those very investments.