All articles tagged with #bond portfolio
Bank of America's CFO, Alastair Borthwick, reassured investors about $99 billion of unrealized losses on its bond portfolio during the company's earnings conference call. The bank's bond portfolio is classified as held-to-maturity for accounting purposes. Borthwick emphasized that the bank's net interest income would rise in a higher-rate environment.
Goldman Sachs purchased the bond portfolio that caused Silicon Valley Bank to book a $1.8 billion loss, leading to the bank's failed attempt at a $2.25 billion stock sale. The portfolio consisted mainly of U.S. Treasuries and had a book value of $23.97 billion. The transaction was carried out "at negotiated prices" and netted the bank $21.45 billion in proceeds. The purchase was handled by a division separate from the unit that handled SVB's stock sale. Silicon Valley Bank was shut down by the FDIC after losing $2 billion, becoming the largest bank failure since the financial crisis.