How Would Bank of America’s Value Be Affected If Fed Begins Rate Hike Now?

-5.26%
Downside
37.92
Market
35.93
Trefis
BAC: Bank of America logo
BAC
Bank of America

If the Fed begins the rate hike in the near term and paces the hikes along the lines of similar situations in the past, Bank of America’s shares are trading at roughly 27% below their potential value under such a scenario:

Fed_QA_BAC2016

Details about the expected change in NIM figures for Bank of America, as well as the other largest U.S. banks under the described scenario can be found in the article How Will Net Interest Margins For The 5 Largest U.S. Banks Most Likely Change Over 2016-18?

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See the full Trefis analysis for Bank of America

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