Identifying and analyzing the risks of ‘risk-free’ securities
A thorough financial analysis and risk assessment of debt security assets and bank equity values shows the threat of bank failures was in plain sight. Interest rate increases result in unrealized losses for held-to-maturity debt security investments, but these losses do not appear in the financial statements (as long as there are no impairment losses).… Read More »Identifying and analyzing the risks of ‘risk-free’ securities