They did not necessarily consider that their assets could fall sharply in value or that investors might not want to continue financing these vehicles – and what impact each of those possibilities might have on the bank.
Notably, most of these vehicles mirrored the liquidity mismatch that exists at most banks in that they contained longer-term assets funded by shorter-term liabilities, but it is not clear that banks fully considered the potential fundingliquidity problems that these vehicles could face if there were sudden market moves or if perceptions of credit risk changed.