thanks to crashing bond market which also took down beleaguered Silicon Valley Bank A US bond market collapse has lumbered some of America's largest and most prestigious banks with $650 billion in unrealized losses, analysts have predicted.
As interest rates have climbed thanks to aggressive hikes by the Federal Reserve, the value of Treasury-issued bonds - owned in large quantities by many banks - has fallen.
Typically, Treasury bonds have been considered a safe place to invest customer deposits, but high interest rates available elsewhere and the availability of new bonds with higher yields has made older bonds less appealing to investors and therefore less valuable.
The diminishing value of those bonds played a major role in the collapse of Silicon Valley Bank in March and has led to sustained concern about the overall condition of the US banking industry.