Bank investment portfolios were hit hard when the Federal Reserve increased interest rates a few years ago leading to negative AOCI and unrealized losses in their bond portfolio. Should banks sell those underwater securities to reposition their existing investments for positive income? The answer, it depends. This episode examined an article from Bank Director titled “Selling bonds at a steep loss is not always a good idea” and an article from S&P Global (subscription required) titled “Falling interest rates lift banks’ underwater bonds nearer to the surface.” A link to the Bank Director article is included below.    Link: Selling Bonds at a Steep Loss Is Not Always a Good Idea | Bank Director