Oct. 1 at 10:24 PM
Unrealized losses on investment securities for banks are skyrocketing.
For Q2 2023, there are nearly
$550 billion in unrealized losses.
To put this in perspective, that’s nearly 25% of all banks’ equity capital.
As interest rates rise and remain higher for longer, this trend is becoming more prominent.
What happens if banks realize these losses?
$JPM $BAC $WFH $XLF