Key facts
- US global systemically important banks (G-SIBs) increased their available-for-sale (AFS) securities holdings to a record high in Q2.
- Citi, Goldman Sachs, and Wells Fargo added a combined $74 billion to their AFS portfolios.
US global systemically important banks (G-SIBs) increased their available-for-sale (AFS) securities holdings to a record high in the second quarter, with Citi, Goldman Sachs, and Wells Fargo adding a combined $74 billion to their portfolios. Citi reported the largest increase, driven by residential mortgage-backed securities.
The sustained increase in AFS securities, particularly mortgage-backed securities, by major US banks indicates a shift in their balance sheet strategies, potentially reflecting a response to market conditions or regulatory guidance.
US global systemically important banks (G-SIBs) expanded their holdings of available-for-sale (AFS) securities to a record high in the second quarter. This marks the twelfth consecutive quarter of growth for these portfolios. Citi, Goldman Sachs, and Wells Fargo were key drivers of this increase, collectively adding $74 billion to their AFS securities. Citi reported the most significant rise, with an increase of $28.2 billion, largely attributed to growth in pass-through residential mortgage-backed securities.