WASHINGTON (Reuters) - The Federal Reserve on Friday issued revised macroeconomic scenarios for its 2017 stress testing programs to correct an error having to do with corporate yields.
The Fed said its previously released hypothetical scenarios contained incorrect historical values for yields on BBB-rated corporate debt in 2016.
“As a result of the correction, BBB corporate yields peak at slightly lower levels in the severely adverse and adverse scenarios. The correction also lowered yields in the baseline scenario, but the revision is more modest than for the other scenarios,” the Fed said in a statement.
The Fed on Feb. 3 released a broad description of its criteria for the 2017 stress tests meant to assess how well the largest U.S banks would fare in another financial crisis.
Reporting by Andrea Ricci