Things to Consider when Repositioning Your Investment Portfolio

Late last year, a number of publicly traded banks sold underwater bonds in their portfolios to reposition low-yielding securities holdings and provide additional liquidity to the balance sheet. The November bond rally reduced the unrealized losses on many US bank’s securities portfolios to the lowest levels in a year and a half. Ideally banks could offset losses with securities gains when selling, but still many banks have a larger proportion of bonds showing losses compared to gains. With more banks looking at executing loss trade strategies, the following are considerations for your bank.

Uses of cash proceeds from loss trade strategy:


Your Bankers’ Bank team is available to discuss potential strategies for your bank and investment portfolio. In addition to our Investment Department resources for the portfolio, Bankers’ Bank provides ALM consulting and expertise to assist your bank. We are available to discuss your potential strategies and provide insight on successful strategies incorporated by other banks.