19 stocks that rake in the biggest returns when interest rates are rising, according to Bank of America

As interest rates rise, investors everywhere are wondering what it means for stocks.

Bank of America Merrill Lynch has identified S&P 500 stocks that are best helped by a higher nominal 10-year yield, based on how the stocks have historically responded to changes in rates.

The screening is “based on a regression of stocks’ monthly excess returns vs. monthly changes in the nominal 10yr yield from 1972-12/2017,” Savita Subramanian, BAML’s head of US equity and quant strategy, said in a recent note.

On Wednesday, the yield on the 10-year note rose to a four-year high as the Federal Reserve sent more signals of its willingness to continue raising interest rates. Minutes from the Federal Open Market Committee meeting showed an upbeat view of the economy that would warrant further rate hikes.

Nineteen stocks from the list are ranked in ascending order of their nominal interest rate beta, or how responsive their prices are to changes in the 10-year yield; the higher the beta, the more sensitive a stock historically has been: