Here's How Higher Interest Rates Help Bank of America
For bank investors right now, there are few things more important than the direction of interest rates. The higher rates climb, the more money banks will make.
Bank of America (NYSE: BAC) serves as a case in point.
Every quarter, the nation's second-biggest bank by assets publishes an interest rate sensitivity analysis in its 10-Q. The analysis looks at six different scenarios, which you can see in the table below, taken from Bank of America's filing:
Source: Fool.com
Bank of America Corp. Stock
€36.82
-1.110%
Currently there is a rather positive sentiment for Bank of America Corp. with 29 Buy predictions and 5 Sell predictions.
With a target price of 42 € there is a slightly positive potential of 14.07% for Bank of America Corp. compared to the current price of 36.82 €.