Tracker_ Quarterly Bank Flows_ 4Q24 Securities Holdings

Summary of Quarterly Bank Flows: 4Q24 Securities Holdings Industry Overview - The report focuses on the banking sector in North America, specifically analyzing the changes in bank portfolio holdings across various types of securities for the fourth quarter of 2024 (4Q24) compared to the previous quarter (3Q24) [1][2]. Key Findings Securities Holdings Changes - US Treasuries: - Banks added $73 billion in US Treasuries, with JP Morgan contributing $50 billion and Bank of America adding $25 billion. Citigroup reduced its holdings by $12 billion [6]. - Total US Treasuries held increased from $1,426,029 million in 3Q24 to $1,498,640 million in 4Q24, a change of $72,611 million (5.1% increase) [7]. - Ginnie Pass-Throughs: - A net addition of $12 billion was observed, with KeyCorp and US Bank adding $7 billion and $6 billion, respectively. Bank of America and Wells Fargo each reduced their holdings by approximately $3 billion [6]. - Total Ginnie pass-throughs increased from $502,441 million to $514,550 million, a change of $12,109 million (2.4% increase) [7]. - Conventional Pass-Throughs: - Banks added $10 billion, reversing previous negative demand. JP Morgan added $7.4 billion while Bank of America reduced $8 billion [6]. - Total conventional pass-throughs rose from $1,499,494 million to $1,509,865 million, a change of $10,371 million (0.7% increase) [7]. - Agency CMBS: - Demand was strong with a net addition of $7.3 billion, led by Bank of America with a $5.7 billion increase [6]. - Total agency CMBS increased from $343,651 million to $350,915 million, a change of $7,265 million (2.1% increase) [7]. - CMOs: - Positive demand continued with a net addition of $5 billion. Bank of America added $2.8 billion while KeyCorp reduced $4.4 billion [6]. - Total CMOs increased from $500,840 million to $506,087 million, a change of $5,247 million (1.0% increase) [7]. Notable Reductions - Agency Debentures: - Experienced the largest net reduction of $6 billion [6]. - Corporate Bonds: - Banks reduced corporate holdings by $3.9 billion [6]. - Municipal Bonds: - A reduction of $3.1 billion was noted [6]. - ABS: - Saw a reduction of $5.7 billion, primarily due to TD Bank's $3.5 billion reduction [6]. - CLOs: - Holdings declined by $3.9 billion, with Wells Fargo reducing $4 billion [6]. Additional Insights - The report includes detailed tables and charts illustrating the changes in bank holdings by type of securities, highlighting the largest net changes and current holders [2][9][17]. - The data is compiled from call report filings available at the FFIEC's Central Data Repository, focusing on AFS and HTM accounts for securities holdings [2]. - The report emphasizes that the data is based on amortized cost to exclude volatility from market value changes [2]. Conclusion - The banking sector showed a mixed performance in 4Q24, with significant additions in US Treasuries and Ginnie pass-throughs, while facing reductions in corporate bonds and agency debentures. The overall trend indicates a cautious but strategic repositioning among banks in response to market conditions.