Regional banks and current yields

I've been following the story about these regional banks that have been experiencing massive liquidity issues, specifically in relation to the HTM treasuries that caused this crunch. Bloomberg has been talking about yields dropping at the moment, while the fed is still projected to hold rates at 5+%.

My question is wouldn't a drop in yields be beneficial to the banks currently being punished by the market? My basic understanding is when yields rise, bonds fall. If this liquidity crunch is due to these banks having too much tied up in HTM assets, wouldn't a drop be beneficial as the mark to market losses would be less?

submitted by /u/TheRealSlobberknob
[link] [comments] https://www.reddit.com/r/stocks/comments/12claav/regional_banks_and_current_yields/
Created 2y | Apr 5, 2023, 4:21:17 PM


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