"When Should We Care About Unrealized Bank Losses?"

A guest spot over at Odd Lots

In the Bloomberg Odd Lots newsletter today, I take a look at the unrealized interest-rate losses in the banking system, which have lingered longer than many expected. While their severity got a lot of attention around the failure of SVB, we’ve been free of further SVB-esque events—despite the losses’ persistence.

The Bloomberg article underlines the limited role the unrealized losses played in 2023 when it came to bank failures and near-failures (though certainly it was a component of contagion)—as discussed at length with Jonathan Rose here—and discusses when those losses may matter more for financial (in)stability.

Full article: https://www.bloomberg.com/news/newsletters/2025-06-26/when-should-we-care-about-unrealized-bank-losses

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