Read the footnotes idiot. Non equity securities. What happens when interest rates are flat? No change in value. What happens when they go up? Decline in value. This is so dumb. You just found a cool chart and had no idea what it meant. It’s just a table showing interest rates increased.
MouthBreatherGaming on
argle gargle argle burp
spagetzzi on
Looks like a chart to attract attention and interactions. Not sure the meaning of it as far as investing goes
redgr812 on
election year, the economy is fake
subscribe to my podcast “maybe I’m crazy, maybe I’m not” /s
Zuberdane on
See that dumpster we are standing next too? Ok, now let’s throw everything we own in there.
StuartMcNight on
Banks hold bonds. When rates go up value or bond in secondary market decreases. Book value of said bonds decreases. Portfolio of banks shows unrealized losses. However, bonds, unlike stocks, when held to maturity recover all their value as the bond issuer returns all the capital originally invested and those unrealized losses disappear.
Therefore if ( IF!!) banks are able to hold those bonds until they mature… this chart is a nothingburger.
But if there are any bank runs or other reasons the banks would need to liquidate those bonds in the secondary market… then those losses would become realized and then banks are fucked (see regional bank crisis from last year).
the_sound_of_a_cork on
Imagine the next round of QE and how much the Fed is gonna have to expand the balance sheet to drive rates down. 🤡 World.
the_sound_of_a_cork on
QE round two, coming to a theatre near you. This will save the banks.
xellotron on
Total bank assets are $22 trillion, this is a whopping 3% unrealized loss
gaius_worzels_bird on
Pull your pants down and grab on to the nearest dumpster 
Arkane819 on
Relax your jaw.
change_of_basis on
This isn’t what I’ll be talking about behind the dumpster with you.. I don’t expect you’ll be doing much talking, actually.
Drinkablenoodles on
Marked to market losses due to negative carries resulting from interest rate risk. So long as they don’t have immediate need for liquidity, these debt instruments can simply be held to maturity for a full nominal recovery of principal
babypho on
So Wendy’s get their ingredients from the dumpsters, and you know they are all moldy, might have some homeless love residue on it, and the food has gone bad. But you aren’t going to get sick until you eat the food.
Tay_Tay86 on
Because the chart is truncated. It only goes back to 2008. The giant dip at the end is unrealized losses on treasuries for the most part. That’s because of how the fed raised rates. This chart doesn’t really have another time like it on it so of course it sticks out like a sore thumb. You need to extend it into the 1960s
Pitiful_Difficulty_3 on
Fed will save banks
learn2die101 on
Lots of bonds were issued when interest rates were low, now that rates are high the old bonds aren’t worth face value.
MD_Yoro on
Only a regard selling t-bills before maturity will you lose value.
Don’t sell your burger before it’s ready.
Error_404_403 on
War in Ukraine, dude. Russia was / is in all banking and securities big time.
EndzeiT420 on
This is *SEPTEMBEAR* electric boogaloo get on your dancing shoes
crom_laughs on
sometimes market up…..sometimes market down
sometimes you have a home…..sometimes you live behind the dumpster
Aggravating-Exit-660 on
Only moldy daves single, no nuggets
DarkUnable4375 on
Once the Fed drop the rates by 2%, all this will be but a dream…
AmNotPeeing on
When a mommy stock and a daddy stock love each other very much…
ariesdrifter77 on
The lines on the right go down and they longer. That’s what I’m seeing
25 Comments
Read the footnotes idiot. Non equity securities. What happens when interest rates are flat? No change in value. What happens when they go up? Decline in value. This is so dumb. You just found a cool chart and had no idea what it meant. It’s just a table showing interest rates increased.
argle gargle argle burp
Looks like a chart to attract attention and interactions. Not sure the meaning of it as far as investing goes
election year, the economy is fake
subscribe to my podcast “maybe I’m crazy, maybe I’m not” /s
See that dumpster we are standing next too? Ok, now let’s throw everything we own in there.
Banks hold bonds. When rates go up value or bond in secondary market decreases. Book value of said bonds decreases. Portfolio of banks shows unrealized losses. However, bonds, unlike stocks, when held to maturity recover all their value as the bond issuer returns all the capital originally invested and those unrealized losses disappear.
Therefore if ( IF!!) banks are able to hold those bonds until they mature… this chart is a nothingburger.
But if there are any bank runs or other reasons the banks would need to liquidate those bonds in the secondary market… then those losses would become realized and then banks are fucked (see regional bank crisis from last year).
Imagine the next round of QE and how much the Fed is gonna have to expand the balance sheet to drive rates down. 🤡 World.
QE round two, coming to a theatre near you. This will save the banks.
Total bank assets are $22 trillion, this is a whopping 3% unrealized loss
Pull your pants down and grab on to the nearest dumpster 
Relax your jaw.
This isn’t what I’ll be talking about behind the dumpster with you.. I don’t expect you’ll be doing much talking, actually.
Marked to market losses due to negative carries resulting from interest rate risk. So long as they don’t have immediate need for liquidity, these debt instruments can simply be held to maturity for a full nominal recovery of principal
So Wendy’s get their ingredients from the dumpsters, and you know they are all moldy, might have some homeless love residue on it, and the food has gone bad. But you aren’t going to get sick until you eat the food.
Because the chart is truncated. It only goes back to 2008. The giant dip at the end is unrealized losses on treasuries for the most part. That’s because of how the fed raised rates. This chart doesn’t really have another time like it on it so of course it sticks out like a sore thumb. You need to extend it into the 1960s
Fed will save banks
Lots of bonds were issued when interest rates were low, now that rates are high the old bonds aren’t worth face value.
Only a regard selling t-bills before maturity will you lose value.
Don’t sell your burger before it’s ready.
War in Ukraine, dude. Russia was / is in all banking and securities big time.
This is *SEPTEMBEAR* electric boogaloo get on your dancing shoes
sometimes market up…..sometimes market down
sometimes you have a home…..sometimes you live behind the dumpster
Only moldy daves single, no nuggets
Once the Fed drop the rates by 2%, all this will be but a dream…
When a mommy stock and a daddy stock love each other very much…
The lines on the right go down and they longer. That’s what I’m seeing