2 Headwinds You Must Understand Before Investing in a Bank

The recent and very rapid rise in bond yields is changing the playing field for banks. As second-quarter earnings announcements rapidly approach, expect them to have an impact on both revenue and profit margins. 

Every bank will be affected, from the trillion-dollar megabanks like JPMorgan Chase (NYSE: JPM  ) and Wells Fargo (NYSE: WFC  ) , to the community bank headquartered in your home town (or an index of community banks, like the SPDR S&P Regional Banking Index).

In the video below, Motley Fool contributor Jay Jenkins explains these critical issues and what they mean heading into the second-quarter earnings season. 

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9/30/2016 12:45 PM
JPM $66.79 Up +1.14 +1.74%
JPMorgan Chase CAPS Rating: ****
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SPDR KBW Regional… CAPS Rating: ***
WFC $44.65 Up +0.28 +0.63%
Wells Fargo CAPS Rating: ****