Therefore, a soft-landing scenario that allows the Fed to cut interest rates would probably cause the value of BAC’s bonds to surge. In fact, the shares have tumbled 16% already this year and 26% in the last 12 months amid worries about the bank’s bond portfolio.īond prices move inversely to their yields.
That’s a huge paper loss, and the situation has been weighing tremendously on BAC stock. Source: Jonathan Weiss / Īs of the end of the third quarter, Bank of America (NYSE: BAC) had unrealized losses on its bonds of $131.6 billion. Let’s explore three such stocks to buy for a soft landing. Most companies will benefit from a combination of continued, strong growth and lower interest rates. The significant decrease in oil prices should push prices further south. Meanwhile, inflation is generally heading downwards.
So far, the chances of materializing appear to be quite high, as the Fed expects the economy to grow at a fairly robust, seasonally adjusted annual rate, above inflation, of 2.1% in the current quarter. While online casino products are basically what Betsoft places much of its focus on, it has also created a Virtual Racebook.
