That didn’t take long. On Thursday the Federal Reserve reported that all 23 big banks tested in its annual stress test, passed. Which means that the last remaining restrictions on dividend increases and share buybacks are now history. Yesterday big banks started to announce dividend increases
U.S. banks that pass their next stress tests will be allowed to raise their dividends after June 30, the Federal Reserve said today, March 25. The Fed will also lift any remaining restrictions on stock buybacks.
Now we get to a really, really hard pick. It’s so hard because our rules, assumptions, and portfolio allocations for fixed income assets is so heavily influenced by a fifteen year period that’s now over. Done with. Gone.
