[s1artibartfast]

Im fine with your terminology and reference. The current date (or that of reporting) can be the reference time for a real dollar valuation.

I fully understand how bond market prices are impacted by interest rates. What most people seem ignorant of is the fact that bonds are not simply market trades asset, but are also have a value at maturity. Most people don't seem to know that HTM assets are reported separate from securities available for sale, which ARE tracked at market value.

And then there's the even stupider idea that the value of long-term assets should be listed as the maturation date npv, as if you can just look up future inflation rates for the next 10 to 30 years.

It seems obvious to me that if you never intend to sell a bond, the maturity value is a measure of interest.

Do you have anything else to add to the discussion, or was that your only point?

[chordalkeyboard]

> It seems obvious to me that if you never intend to sell a bond, the maturity value is a measure of interest.

The reason this matters is because in the case of a bank who needs the funds to operate then they very much might need to sell the bonds, or revalue them at NPV because of statutory requirements.

This entire discussion is because the NPV of HTM assets is now relevant.

[s1artibartfast]

That doesn't mean it is universally relevant, nor does it mean it is more relevant than the maturity value in the asset table.

Most importantly, Banks already DO report the unrealized losses and Fair market value on HTM securities. Just not in the assists section, but in a dedicated section on the HTM assets. It is not some big secret.

You can even look at it in silicon valley Banks filings if you want(1). They break down the HTM losses and fair market value plain as day starting on page 125.

At the time of filing, they reported a mature value of 91 billion, fair value of 76 million, and unrealized losses of 15 billion. They break it down by the duration of maturity and interest they earn on them. Everything someone could ask for is there.

It seems to me that this whole question of reporting fair market value instead of maturity in the asset table comes from people who have never read a 10-k filing and think there is some conspiracy.

SVBs HTM loss situation should have been no surprise to anyone looking. The real conspiracy is their HTM position was common knowledge.

https://www.sec.gov/Archives/edgar/data/719739/0000719739230...