Some big U.S. banks are buying more U.S. government securities as yields start to rise and the Federal Reserve appears ready to taper its bond-buying program - a balance sheet shift that analysts say could boost bank earnings by several percentage points depending on how they play their hands.
on Thursday said they had picked up extra net interest revenue during the quarter by buying securities with higher yields.said on Wednesday that it continues to hoard cash, expecting rates to move higher as Chief Executive Jamie Dimon predicts.
"We've got a strong liquidity position and we've been putting some of that to work," Mason told reporters. How the country's largest lenders manage that mix of cash and securities on their balance sheets will help separate winners from losers in coming quarters, as uncertainty grows over the inflation and interest rate outlook, analysts have said.
Goldberg said it was too early to say if an uptick by some banks in securities purchases signaled a new industry trend.
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