The sell-off in Treasuries that extended through much of this month underscores the dangers of adding exposure to long-dated bonds to pad yields on securities portfolios.
But, with continuing weakness in economic reports, no resolution to the European crisis and the Federal Reserve’s promise to keep rates low far into the future, both large and small banks have been doing just that in recent quarters, if only by a bit. (The graphic below shows aggregate maturity profiles for large and small institutions in the first tab, and maturity profiles and portfolio yields for individual holding companies with more than $1 billion in assets in the second tab. Interactive controls are described in the captions. Text continues below.)