Is the Banking System Insolvent?

Is the banking system insolvent? Overview by Chris at Hauseit® (https://www.hauseit.com).

Save money when buying, selling and renting real estate in New York and Florida with Hauseit. Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014.
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There has been a lot of talk about rising rates hurting the values of banks' bond portfolios, with scary charts being shared on various finance blogs about how all the unrealized losses added up are more than the equity of the banking system.

This is actually disingenuous as it only looks at one side of the equation. Keep in mind that most banks (unlike SVB), actually hedge their interest rate risk.

For example, you can bet that JP Morgan assiduously hedges the vast majority of its loan book and bond portfolio with interest rate swaps and hedges, which are very commonplace.

We explore this mystery and explain further in the following video.
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Hauseit Group LLC, Licensed Real Estate Broker
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Email: team@hauseit.com
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