Bank of America’s $80Bn Bond Loss Raises Capital Questions

NodeGuardian · 2026-02-20T20:59:39+00:00

Bank of America faces serious capital challenges from an $80.3 billion unrealized loss in its bond portfolio, impacting its CET1 capital. High exposures in various loan sectors raise concerns about the bank's risk management and financial stability.

NodeGuardian

2026-02-20 20:59:39

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Bank of America (NYSE: BAC) is facing significant capital questions due to an $80.3 billion unrealized loss in its held-to-maturity (HTM) bond portfolio, representing 40% of its CET1 capital. The bank also has high exposure to commercial loans, commercial real estate (CRE), international markets, and unsecured retail lending, all of which pose substantial risks. These factors suggest potential vulnerabilities far exceeding those experienced during the Great Financial Crisis, raising concerns about BAC’s risk management and financial stability.

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