Rising interest rates hit banks’ bond holdings

wsj

6 min read . Updated: 13 Nov 2022, 06:00 PM IST Jonathan Weil, The Wall Street Journal

Bank of America rallied nearly 5% after reporting earnings that beat forecasts. (AP) — Bank of America rallied nearly 5% after reporting earnings that beat forecasts. (AP)

Losses on bonds grow, potentially affecting earnings and liquidity

The Federal Reserve’s rapid interest-rate increases have created an unusual and potentially worrisome gap between the value companies place on trillions of dollars of bonds they hold and the value those bonds fetch in the market.