Bank of America Reports $131.6 Billion Unrealized Loss on Securities in Q3, Though Experts Say Sale Unlikely
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Bank of America reported an unrealized loss of $131.6 billion on securities in Q3, up from $106 billion in Q2.
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The bank held $603 billion in securities intended to be held until maturity, down from $614 billion last quarter.
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Holding securities until maturity allows the bank to avoid mark-to-market losses.
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Analysts say it's very unlikely BofA would sell these securities at a loss due to strong liquidity.
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Banks across the US may be facing total unrealized losses of at least $650 billion in securities portfolios.