AFS securities sale costs Truist $6.8bn

- Lorenzo Migliorato
- 31 Jul 2024

Truist reported a $6.8 billion loss in the second quarter after selling devalued available-for-sale (AFS) securities, marking the largest single-quarter hit for a major US bank over the past decade.

During the quarter, the bank sold securities valued at $27.7 billion, which were yielding an average of 2.8%, including the impact of hedges – far below current risk-free US rates.

The sale crystallised

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