Finance

KeyCorp Sells $7 Billion of Securities to Bolster Balance Sheet

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KeyCorp sold about $7 billion of low-yielding investment securities, as the bank works to restructure its balance sheet following a period of regional bank tumult last year.

The Cleveland-based lender said in a filingBloomberg Terminal Monday that the sale will likely result in an after-tax loss of about $700 million in the third quarter. The securities it sold had a weighted average book yield of about 2.3% and an average duration of approximately six years.