Interest Rate Environment: Preferred stocks are highly sensitive to changes in interest rates. Rising rates generally lead to a decrease in preferred stock prices, while rapid interest rate cuts could compress Net Interest Income (NII) for banks.

Financial System Health and Credit Quality: The value of preferred securities is strongly correlated with the overall health of the financial system and the issuer's credit quality. Banks, including Bank of America, issue preferred stock to meet regulatory capital requirements.

Regulatory Environment: An evolving or more aggressive regulatory environment can impact bank operations and profitability. Macroprudential policies, for instance, have shown a significant association with bank stock returns.