Bank Of America's Subramanian: Market Is Ready For Just One Rate Hike In 2016

Is the market ready for one more rate hike in 2016? What about several rate hikes?

According to Bank of America's Savita Subramanian, the market is ready for just one rate hike in 2016 — certainly not two or three.

Speaking as a guest during CNBC's "Halftime Report," Subramanian pointed out that the most expensive sectors in the S&P 500 are sectors that have done really well because rates have gone nowhere for seven years.

"Our house view is that we will see one rate hike this year," she said. "I think the market might be positioned for that. But anything more than that would actually boil the markets."

Subramanian added that the markets are especially not prepared for a rate hike in June.

Related Link: What Negative Rates Are Doing To Financial Services ETFs

On the other hand, Joe Terranova of Virtus Investment Partners suggested that a rate hike in June will be a "one-and-done" event.,/p>

Also speaking as a guest on the "Halftime Report," he pointed out that global markets are less volatile in terms of credit markets which are "clearly functioning much better" within emerging markets and Europe.

Terranova added that any interest rate should be accompanied with a press conference - an event that "you are not going to get" in July, September is "too close" to the election and December is post election so Fed officials may not even still "be there in January" depending on which party wins the election.