Here's Another Group of Stocks Getting Hammered by Soaring Yields

Bank stocks are taking a beating as Treasury yields climb, with the KBW Nasdaq Bank index down 9.7% over the past month. The slide has hit the biggest names hardest: BAC, GS, and MS have each posted double-digit percentage declines.

The source identifies four channels through which higher yields squeeze lenders. Net interest margins narrow. Treasury bills compete directly for deposits. Loan demand weakens. And bond portfolios lose value as rates rise.

Interpretation: the damage is not confined to one line of business. When margin pressure, funding costs, loan volume, and securities marks all move against the sector at once, a broad drawdown across large-cap banks is the logical result. That helps explain why BAC, GS, and MS fell in tandem rather than diverging on company-specific news.

The same pressure likely extends to the preferred shares tied to these issuers, including BACPB, GSPA, and MSPA, though the source does not quantify moves in the preferreds. Other names in the group, such as SCHW, BNY, and PNC, sit within the same rate-sensitive banking and financial complex.

The article's author recommends caution on bank stocks until yields stabilize, framing stabilization in rates as the precondition for any recovery.