Well Fargo gave up as much as $1 billion in return last year by trimming its bond holdings, betting that interest rates will rise.
Time will tell whether the strategy proves successful.
The stance by Wells, the country’s fourth largest bank, marks a sharp contrast to the three bigger ones.
While Wells cut its bond portfolio by $34 billion in the second half of last year, JPMorgan Chase, Bank of America and Citigroup increased their holdings by an average of $35.5 billion, Bloomberg reports. (more)