AFS securities sale costs Truist $6.8bn

Purge of investment securities marks largest single-quarter loss by a US bank in 10 years

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 a 10.8% erosion in the value of the AFS book, ranking it as the costliest one-quarter purge of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here