Matt Levine quoting someone else:

Bank of America is bearing the cost of decisions made three years ago to pump the majority of $670bn in pandemic-era deposit inflows into debt markets at a time when bonds traded at historically high prices and low yields.

The moves left BofA, the second-largest US bank by assets, with more than $100bn in paper losses at the end of the first quarter, according to data from the Federal Deposit Insurance Corporation. The sum far exceeds unrealised bond market losses reported by its largest peers.


Unrealized bond losses can become realized if depositors get to know of them and start a run. Happened to regional banks recently.
No chance this will happen to a G-SIB (systemically important bank) like BAC, but still shows incompetence. Why is it better than JPM Chase or S&P index?
WEB bought it cheap but what matters now is whether it can outperform JPM or a broad index going forward. Otherwise, dump it, take profits, buy index. Continuing to hold shows old man's inertia.

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