Bank of America bond losses could top $90 billion

Paper losses on a large bond portfolio at Bank of America could expand by more than $10 billion to top $90 billion in the third quarter of 2026. A selloff in fixed-income markets has pressured bond valuations, putting fresh attention on the bank's low-rate holdings.

According to regulatory filings, Bank of America carried held-to-maturity debt securities with an amortized cost of $505,799 million at the end of the second quarter of 2026. The fair value of that portfolio stood at $423,734 million, reflecting gross unrealized losses of $82,065 million. That represented an increase from year-end 2025, when gross paper losses stood at $80,230 million on an amortized cost of $522,660 million and a fair value of $442,430 million.

The bank also held available-for-sale debt securities with a fair value of $363,419 million at the end of the second quarter. Across both portfolios, total debt securities carrying value on the balance sheet reached $869,218 million. The low-yielding assets consist largely of U.S. agency mortgage securities.

Unrealized losses remain below the historical peak of $131.6 billion recorded in the third quarter of 2023. Bank of America declined to comment on Thursday regarding its third-quarter portfolio valuations.