Macro glossary
Bank Unrealized Losses on Securities
The cumulative mark-to-market losses banks are carrying on their held-to-maturity securities portfolios.
Definition
FDIC-reported unrealized losses on bank securities topped $600 billion during the 2022-23 rate-hike cycle. These losses do not hit earnings unless sold, but they create deposit-run risk in the event of liquidity stress, as demonstrated by SVB in March 2023.