Bank Of America: Now Is A Great Time To Buy This 3% Yielder (NYSE:BAC)

Seeking Alpha | Oct 17, 2020 at 12:20 PM
  • The banking sector continues to be challenged in the current macroeconomic environment.
  • One of the key factors to the YoY decline in EPS was the drop in net interest income, which, as seen below, dropped to $10.2B during Q3.
  • This was the result of the net interest yield (excluding Global Markets) dropping to a near-term low of 1.72%, leading to declines in mortgage rates, and what management deemed as an “extraordinary” level of mortgage prepayments through refinancing activity.