Comerica, Popular and Ally most battered by agency RMBS markdowns
One-fifth of investment’s value eroded as of December 2024
As of December 31, 2024, mark-to-market investments in agency residential mortgage-backed securities (RMBSs) by Comerica, Banco Popular and Ally Financial were underwater by approximately one-fifth of their purchase value – the highest loss rates among US banks.
The fair value of agency RMBSs classified as available-for-sale (AFS) was 20.3% below amortised cost at Comerica, 18.9% at Banco Popular and 18.7% at Ally. This corresponds to unrealised losses of $2.3 billion, $1.1 billion and $2.4
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