Banks agency MBS holdings decline in second quarter
Barclays client note shows biggest gainers and decliners
The National Information Center has released consolidated financial statements for bank holding companies for the second quarter, according to a client note from Barclays, showing agency MBS holdings decreased by $4 billion for the top 50 banks by assets in their HTM and AFS portfolios.
“Most of the decline came in conventional agency MBS holdings, which fell by $4.2 (billion),” Barclays says. “Agency CMO holdings decreased ($900 million), while the GNMA holdings increased $1.1 (billion).”
U.S. Bancorp had the largest increase in agency MBS holdings, adding $4 billion, while Bank of America reduced its holdings by $8.8 billion.
Holdings of non-agency MBS of the top 50 banks decreased by $4.4 billion, while CMBS holdings rose by $7.4 billion. Treasury holdings increased by $48 billion, while agency debt holdings fell $8.9 billion on a quarter over quarter basis.
Overall, Barclays found, allocation of bank portfolios to securities increased by $72.8 billion over the quarter.
Allocations to loans and leases rose by $95.5 billion, while cash, net fed funds, and reverse repo were flat on a quarter-over-quarter basis.
In the loan books, C&I loans increased by $40.6 billion from the first quarter.