Bank Of America Preferreds Offer Interest Rate Protection

Jeremy LaKosh6.03K FollowersFollow5ShareSavePlay(7min)CommentsSummaryBank of America preferred shares offer diverse opportunities for income investors depending on their interest rate outlook.BAC's net interest margin and net interest income reached multi-year highs, supported by loan growth outpacing deposits and manageable loan-to-deposit ratios.Investors seeking to hedge against falling rates may consider BAC's discounted fixed-rate preferreds, while those expecting stable or rising rates should favor floating-rate preferreds.I advocate for BAC's floating preferred shares, citing a neutral rate regime and attractive yields exceeding 6.6% with limited call risk. J. Michael Jones/iStock Editorial via Getty Images Introduction Bank of America (BAC) is one of the “too big to fail” banks. Along with common shares, the bank has a plethora of preferred shares and bonds for fixed-income investors to choose from. I last covered Bank of America in October, where This article was written byJeremy LaKosh6.03K FollowersFollowOther writing on Substack: https://yieldstrategies.substack.com/I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.