According to Bank of America, U.S. bank stock prices have fallen to an 80-year low compared to the S&P 500 index. In recent times, the main weakening factor was the collapse of trejeris, and over the past decade, the sector was negatively affected by low interest rates, as well as government regulation that impedes the profitability of banking organizations, profinance.ru quotes BoA expert.
Falling value of bonds contributed to the aggressive cycle of rising interest rates - in the spring it provoked the collapse of a number of banks in the U.S., invested in this type of assets and suffered large losses due to their unprofitable realization. However, not all of them have sold their trijeris - many of them are still on the balance sheet. Moody's estimates the unrealized loss of U.S. banking organizations at $650 billion, Bank of America has it at $130 billion. In all likelihood, they will hold on to the treasuries to avoid real losses, but this prevents them from getting a higher yield, which is now about 5%, the portal writes.