Ally Financial Sells Lower-Yielding Securities for Q1 Loss of $250 Million

MT Newswires Live
03-05

Ally Financial (ALLY) said in a regulatory filing submitted Tuesday that it sold some of its lower-yielding securities with an amortized cost of approximately $2.8 billion for proceeds of about $2.5 billion, resulting in a pre-tax Q1 loss of around $250 million.

The proceeds were reinvested into shorter duration liquid securities at current market rates.

Ally said it expects the repositioning to reduce its common equity tier 1 ratio by about 12 basis points and increase net interest income and net interest margin.

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