KeyCorp sells low-yielding securities at $700M loss

KeyCorp in Cleveland repositioned its balance sheet.

The company, which recently agreed to sell a big stake in itself to Scotiabank, sold $7 billion of low-yielding securities at an after-tax loss of $700 million.

The securities that were sold had a weighted average book yield of about 2.3% and an average duration of roughly six years.

The first $800 million tranche of Scotiabank’s investment recently closed.