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Financial Times

Bank of America nurses $100bn paper loss after big bet in bond market

Bank of America faces over $100bn in paper losses at the end of Q1 due to decisions made three years ago, far exceeding those reported by its peers.

Bank of America faces over $100bn in paper losses at the end of Q1 due to decisions made three years ago.
The losses far exceed those reported by its largest peers.
BofA put the majority of pandemic-era deposit inflows into debt markets, while others parked a greater share in cash.
The losses account for a fifth of the total unrealised losses in the securities portfolios among US banks.
BofA has no plans to sell the underwater bonds, but holding on to them could limit the income it generates from customer deposits.

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