US banks are sitting on an estimated $650 billion in unrealized losses on their bond holdings.
Here's why banks have flexibility in making sure that their $650 billion balance sheet bomb is defused.
The bond crash culminated in an estimated $650 billion in unrealized losses held by banks, according to Moody's.
How banks can defuse their balance sheet bombDespite the massive unrealized losses, banks are looking at three scenarios that could help ensure losses aren't realized.
First, banks could simply hold onto their low-yielding debt until it matures and not realize any losses at all.
Persons:
—, aren't, Louis Navellier, Geetu Sharma, Sharma, Banks
Organizations:
Service, Fed, Silicon Valley Bank, First Republic Bank, Signature Bank, Consumers, of America, Treasury, Federal Reserve, Banks, P Bank, P Regional Bank ETF