Fed Has $1 Trillion In Paper Losses. Projects $90 Billion In 2023 Red Ink

You've surely seen the figure by now: US banks were sitting on $620.4 billion in unrealized losses at the end of 2022. And that was actually down 10% from Q3. Those are paper losses, mind you. With an emphasis on "paper." The split was $341 billion across HTM portfolios and $280 billion in AFS books. In light of recent events, this has become a contentious, multi-faceted debate. So, rather than make claims about what isn't a problem, it's far safer to say what is. It's a problem when you have