400 bn USD

US banks are currently sitting on more than 400 bn USD of unrealized losses in their bond portfolios. The  amount of losses is at an all-time high and 10% higher than at the beginning of the year, just before the collapse of Silicon Valley Bank. We believe this duration mismatch between long term assets and the deposits is not a major problem, at least for the larger banks with little risk on a run on their deposits and a fire sale of their portfolios. The share prices of the US banks have remained weak and valuations look attractive to us. Time for a revisit the strongest ones.