SBNY - US Banks Are Struggling With $650 Billion In Unrealized Losses On Bond Holdings — Here's How They Can Get Out | Benzinga
American banks are grappling with a staggering $650 billion in unrealized losses on their bond investments — but there could be a way out.
What Happened: The losses resulted from banks pouring trillions into low-yield Treasury bonds before the Federal Reserve's rate hikes.
With the surge in interest rates, the value of these bonds has taken a nosedive, putting the banks in a precarious position.
According to a report by Insider, the earlier failures of banks such as Silicon Valley Bank, First Republic Bank (NYSE: FRC), and Signature Bank (NASDAQ: SBNY) were partly due to the diminishing value of their bond holdings.
Tracing back ...