US banks sit on unrealized losses amidst rally in US stocks and bonds
As US stocks and bonds rally, US banks are facing unrealized losses of $620 billion, according to CNN. The losses are largely due to the economic impact of the pandemic and the resulting decrease in demand for loans. Despite this, the Federal Reserve has not expressed any plans to intervene and banks are left to deal with the losses on their own.
Asian bank stocks have also been impacted by US systemic concerns, with tumbling stock prices due to worries over the economic impact of ongoing pandemic related shutdowns.
However, there is some positive news in the market. S&P 500 futures have gained 1.0% and yields are rebounding as concerns surrounding Silicon Valley Bank (SVB) and Signature Bank begin to fade, according to FXStreet.
The US dollar, on the other hand, has experienced a slide due to recent Fed and Treasury Department interventions intended to mitigate the repercussions of the SVB setbacks, as reported by DailyFX.
While the markets may be fluctuating, it seems that investors and financial institutions alike are working to navigate the uncertainties of the current economic climate.