US banks have reduced their debt holdings by selling $4.74 billion of secured loans, leaving just $1.3 billion remaining on their balance sheets. The sale occurred at par value, meaning the loan was sold for its full face value and paid with a fixed interest rate. The timing of when the final $1.3 billion will be settled with banks is unclear.
Secured debt sales have become increasingly common in recent years as financial institutions aim to manage their risk exposure and maintain healthy capital levels.
Source: https://www.reuters.com/business/finance/banks-sell-down-more-x-debt-just-13bln-now-left-their-books-2025-02-14