If you thought SVB was bad ... The Fed is sitting on unrealized losses of ~$1.2 trillion on their $8.3 trillion bond portfolio. And the Fed is losing money every day by paying $$$ to commercial banks via reverse repos.
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@WallStreetSilv These are unrealized losses though. As long as they hold to maturity there is no loss. It is not like being underwater w equities. Plus, if the government needs more money they will print. Inflation a concern in such a case. It's not like they sell like a corporation would do.
@BankerG2 @WallStreetSilv Finally, someone who knows what he's talking about.
@BankerG2 @WallStreetSilv Exactly. And unlike SVB, there’s no need for the FED to cash in on its long-term bonds and sell them at a loss.