Here's Why Bank of America Is a Good Stock in a Rising-Rate Environment
The Federal Reserve recently commenced what could be the first of many increases to its benchmark overnight lending rate this year, and many banks are poised to benefit. But few will benefit like Bank of America (NYSE: BAC), which has significant exposure to higher rates.
Higher interest rates will increase the yield attached to many of Bank of America's existing and future loans, as well as the debt securities in which the bank deploys cash. Here are two charts that show why Bank of America is a good stock to have in this kind of rising-rate environment.
Source: S&P Global Market Intelligence (formerly S&P Capital IQ).
Source Fool.com
