Visualize how rising interest rates eat into a bank's equity buffer.
Scenario: $80B in Held-to-Maturity bonds vs. ~$16.3B in Total Equity.
Unrealized P&L
-$0.00 B
Equity Consumed
0%
INSOLVENCY RISK DETECTED
Unrealized losses now exceed the bank's total equity buffer.
Impact on Equity for every 0.25% rate hike.
| Rate | Unrealized P&L | Equity Remaining | % Wiped Out |
|---|