Bank of America: 6% Preferred Shares Offer A Call Option On Interest Rate Decreases


  • Bank of America is one of the United States’ largest financial institutions.
  • The preferred shares offer a dividend yield of approximately 6%.
  • The prefs with a low preferred dividend are trading at a steep discount to the principal value, making them interesting securities to bet on lower interest rates.

A Bank of America ATM is shown in Tampa, FL, USA.

JHVEPhoto/iStock Editorial via Getty Images


Bank of America (NYSE:BAC) doesn’t need any introduction. A household name in the US financial sector, virtually every investor in the USA and abroad will have heard of this bank. Rather than discussing the merits of

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Income Statement

Bank of America Investor Relations

Balance sheet - liabilities and equity side

Bank of America Investor Relations

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.

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