Last week, the Fed’s balance sheet plunged by almost $75BN last week, its biggest weekly drop since July 2020.

A total bloodbath in Treasury notes, bonds, and mortgage-back securities again:

Here is a reminder that these instruments account for over 80% of the Federal Reserve's balance sheet.

If they were to be reevaluated using a mark-to-market methodology, the Fed's assets could be… pic.twitter.com/x0YNQez2iJ

— Otavio (Tavi) Costa (@TaviCosta) September 25, 2023

That doesn’t change the fact that the collateral value of these bonds should be accounted on a mark-to-market basis.

— Otavio (Tavi) Costa (@TaviCosta) September 25, 2023

h/t theSilverVigilante