Japan’s top insurer bond losses triple echoes U.S. bank collapse warning. SVB crisis replay? Unrealized pain turns real without central bank shield

‘Japan’s Top Life Insurer Says Unrealized Bond Losses Tripled.’
This Bloomberg headline sounds familiar, right? Back in March 2023, several US regional banks, including Silicon Valley Bank and later First Republic Bank, collapsed when ‘unrealized losses’ became realized losses as people got their money out.
Did the system collapse? NO! Why? Because the Federal Reserve stepped in. The Fed balance sheet grew by USD 400 billion, and the S&P 500 Index fell just 8%, which was recovered in late April.
The Japanese and US banking systems are not the same; if things get really ugly, the reaction from central banks is.