BNY, State Street took $6.5bn fair-value hit to bonds in Q3
Eroding prices of RMBSs and govies keep widening unrealised losses
BNY Mellon and State Street marked down their investment securities by a combined $6.5 billion in the third quarter, with declines in the value of govies and mortgage-backed securities (MBSs) biting the hardest.
The two custodian banks have taken crippling fair-value hits on the investments since yields began their ascent at the start of this year, with unrealised losses widening further still in Q3.
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