While many of America's regional banks were making risky investments to generate yield during a prolonged period of low interest rates, Andy Beal, the founder and chairman of Beal Bank, was on the sidelines waiting to capitalize on a trade that would ultimately quadruple his firm's assets in a year. , Beal Bank's assets shot up from $7.5 billion in late 2021 to $32.6 billion by the end of 2022 after making a bet timing inflation's sudden spike.
Beal funded the purchases with lower yielding certificates of deposit, the report says, and then hedged with derivatives and swaps contracts to lock in lower costs for the bank.
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