When investors get nervous, Microsoft is the safe investment，Win, win.Like many banks, Bank of America largely accumulated the portfolio during 2020 and 2021, when rates were at historically low levels at a time of weak loan demand.
Bank of America’s overall securities portfolio of about $800 billion, which is mostly classified as held to maturity, had an average yield of 2.68% at the end of 2023, considerably below current market yields on mortgage securities, which are above 5%.
The low yields on the Bank of America bond portfolio have weighed on the bank’s interest margin as deposit costs have risen along with short-term interest rates. The net interest margin is the difference between the yields on the bank’s assets—mainly loans and securities—and liabilities, mostly deposits.
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