U.S. Banks Are Facing Greater Unrealized Losses

According to the Wall Street Journal, U.S. banks are expected to see an increase in unrealized losses on bonds and loans for the second quarter, as long-term yields continue to rise.  The continued decline in market values reflects a further increase in long-term interest rates during the quarter. This development poses challenges for banks, who are paying elevated rates for funding and have increased borrowing from the Fed’s Bank Term Funding Program, with outstanding loans now totaling $103.1 billion. Read More