BofA's Paper Bond Losses Balloon to $109B as Trading Revenue Slides 17%
BAC is trading near its 52-week low of $46.115 (12% above the low).
Summary
Bank of America's unrealized losses on its bond portfolio climbed to $109 billion in Q3, up from $85 billion at the end of June and above the $103.9 billion figure reported yesterday. Rising long-term yields are the driver, and the paper loss now sits at a scale that pressures book value and capital-return capacity if rates stay high. FICC trading revenue fell 17% year-over-year, compounding the weak quarter that already featured a $1.08 EPS miss versus $1.11 consensus and a $1.21 billion AML/sanctions penalty. The stock closed at $51.39 on Oct. 14 with an RSI of 22.6 — deeply oversold — and trades 13.7% below its 50-day average. RBC trimmed its price target to $60 while Baird upgraded to Outperform with a $62 target, so sell-side views are split on whether the regulatory and rate headwinds are priced in.
At the time of this announcement, BAC was trading at $51.79 on NYSE in the Finance sector, with a market capitalization of approximately $362.1B. The 52-week trading range was $46.12 to $65.23. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.