Thanks for the reply! I actually wrote a part 3 a week ago which addresses them selling their whole AFS, HTM + adjustable + part of their hybrid loan portfolios.

I touched a bit about how their depositors can come back, and like you said, use that to pay off their short term obligations.

However, I didn't go into detail about how the bank can optimise its debt payments by using their interest from loans to pay off the debt. I thought this was a bit too nuanced and speculative until we have concrete figures from the FRC. Since selling parts of their loan portfolios will affect loan interests etc.

I guess the big question is what's their deposits now, and the state of their balance sheet, recently there's a Bloomberg article that said there deposits are stabilising, hopefully we will get some numbers soon...

Curious to hear what you think about part 3, though:

https://victorinvesting.medium.com/first-republic-bank-frc-part-3-35646968d8e2