EBC - A Painful but Necessary Move: Eastern Bankshares Repositions Its Balance Sheet
2023-05-02 06:00:00 ET
Following the failure of several prominent midsize U.S. banks, lots of other banks have been thinking about what to do with their underwater bond portfolios and how much liquidity to maintain in an environment filled with uncertainty.
The Boston-based regional lender Eastern Bankshares (NASDAQ: EBC) chose to take action and sell a portion of its bond portfolio to reposition its balance sheet and remove some of the interest rate risk.
The move is certainly painful and resulted in a big one-time loss, but it was also necessary and now puts the bank on a much better footing in what will continue to be a difficult environment this year.
For further details see:
A Painful but Necessary Move: Eastern Bankshares Repositions Its Balance Sheet