BofA’s collateralised mortgage obligation holdings surge 263%
Second-quarter purchase in line with trend among top US dealers of expanding AFS books beyond Treasuries
Bank of America added $7 billion of agency collateralised mortgage obligations (CMOs) to its mark-to-market bonds in the second quarter, becoming the latest US bank to diversify its securities portfolio into higher-risk instruments compared with US Treasuries.
The agency CMOs, all booked as available-for-sale (AFS), ballooned by 263% to $9.7 billion measured at amortised cost, or by 285% to $9.4 billion at fair value.
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