KeyCorp refreshes AFS portfolio with $7bn CMBS sale
Strategic shift taps peak valuations and Scotiabank investment to reduce AOCI pressure
KeyCorp sold $7 billion in commercial mortgage backed-securities (CMBSs) at a loss in the fourth quarter, capitalising on a temporary bond market rally to refresh its available-for-sale (AFS) portfolio.
The sale resulted in a $918 million pre-tax loss, a significant hit for a mid-sized regional bank. Nevertheless, chief executive and chairman Cristopher Gorman described the timing as fortuitous in
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