US Banks Face $395.3 Billion Unrealized Losses in Q2 2025

The sector records its 13th straight quarter of investment security losses, about six times the peak level seen during the 2008 financial crisis.

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Terms & Concepts
  • Unrealized Losses: Losses that occur when the market value of an asset falls below its purchase price but the asset has not yet been sold.
  • Investment Securities: Financial assets, such as bonds or stocks, purchased with the intent to earn returns through interest, dividends, or capital gains.
  • Interest Rates: The cost of borrowing money, typically expressed as a percentage, which can significantly impact the valuation of fixed-income securities.