July 31, 2024 (NO COMMENTS)

Purge of investment securities marks largest single-quarter loss by a US bank in 10 years

Truist reported a $6.8 billion loss in the second quarter after selling devalued available-for-sale (AFS) securities, marking the largest single-quarter hit for a major US bank over the past decade. During the quarter, the bank sold securities valued at $27.7 billion, which were yielding an average of 2.8%, including the impact of hedges – far below current risk-free US rates. The sale crystallised a 10.8% erosion in the value of the AFS book, ranking it as the costliest one-quarter purge of