Bank of America Corporation

“Bank of America is a high-quality deposit franchise with a durable multi-layered moat, but its ROTCE of ~11% structurally trails JPMorgan by 500bps, the bond-portfolio duration blunder continues to drag returns, and the stock at 1.39x book already prices the NII recovery. With a best-case 10-year total return of ~2–2.5x (~8–9% CAGR), risk of permanent capital loss is low but opportunity cost is high. The business won't impair capital, but it won't compound it at above-market rates either — making it a hold for existing owners and a pass for new allocation when better ROIC opportunities exist.”