2024-06-15 11:40:00 ET
Summary
- Bank of America's loan portfolio shows low exposure to commercial real estate, with only a (relatively) small portion past due.
- Bank of America's preferred shares offer a 5.65% yield, but swapping to Series L could provide a higher yield with similar risk.
- The bank's preferred dividends are well covered, making them an attractive investment option.
Introduction
As other central banks (in Canada and the Eurozone) have started to reduce their benchmark interest rates, I’m not quite confident the interest rates on the financial markets have peaked. That’s why I'm still expanding my fixed income portfolio as I’d like to further increase my exposure to that pillar while adding duration as some securities in my fixed income subdivision will mature in the next few years....
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For further details see:
Bank Of America: Swap A 5.6% Yield For A 6.1% Yield