Big Banks Face Billions in Unrealized Bond Losses But Avoid SVB's Fate
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Big banks like BofA are sitting on $650B in unrealized losses as bond prices crashed.
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SVB's collapse in March was driven by its $1.8B bond portfolio loss, worrying some that big banks could be next.
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BofA has racked up a $130B unrealized loss, but says it plans to hold bonds to maturity for no actual losses.
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Unlike SVB, big banks haven't seen mass deposit withdrawals despite unrealized losses.
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Still, unrealized losses are weighing on bank stocks, with BofA down 24% in past year amid worries.