Mortgage Debt Rejected by Banks Facing New Rules: Credit Markets - Bloomberg

Mortgage Debt Rejected by Banks Facing New Rules: Credit Markets - Bloomberg

“People who don’t care about the price volatility will still care about the cash flow characteristics,” Caughron said.
While BB&T Corp. is happy to be reinvesting proceeds from past purchases at about the same yields as it originally booked, the lender is maintaining the portfolio’s size and its mix of debt with a variety of durations, CFO Daryl Bible said.
BB&T, with $183 billion in assets, is sticking with its previous strategy because it doesn’t know where the economy and yields are headed, Bible said in a telephone interview. The Winston-Salem, North Carolina-based bank also needs to pay attention to new regulations even though they don’t yet apply to the lender, he said.
“We’re one of the largest banks just under the $250 billion-asset threshold,” Bible said. “So you don’t know when you’re going to cross that threshold, but you have to manage it like you’re going to cross it at some point down the road.”