@Bragato18 28 October 2022 more from that month

- KBW Bank Index has declined over 30% since topping out in January. - KBW Bank Index includes 24 banking stocks representing the large U.S. national money centers, regional banks, and thrift institutions. - it is probably nothing - but banks have huge holdings of bonds - with this year’s being the worst bond bear market in history, those bond portfolios are suffering massive mark-to-market losses. Hobsons Choice For the Banks - classify their bond holdings as: - “Available for Sale” (AFS), which offers flexibility but the bonds must be marked-to-market and losses reduce the bank’s capital base. - “Held to Maturity” (HTM). HTM does what it says on the tin which means that those funds could not provide liquidity in the event of a run on the bank.