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Oct 16, 11:52 PM
Bank of America is preparing to raise
$8 billion through an unusual investment-grade bond offering on Friday, returning to the debt market for the first time since April despite a turbulent week for credit markets. The four-part transaction includes maturities ranging from three to 11 years. The longest tranche, worth
$2.75 billion, was priced at 0.95 percentage points above U.S. Treasuries, tightening 25 basis points from initial guidance.
The offering makes Bank of America the third major Wall Street lender to issue bonds this week, following
$10 billion in combined issuance from JPMorgan Chase and Morgan Stanley. The market has faced volatility in Treasury yields, higher-than-expected inflation and growing concerns about the sustainability of massive AI infrastructure spending.
Bank of America had raised just
$17 billion in bonds so far this year, the lowest amount among the six largest U.S. banks, and was the only one that skipped the market in the third quarter.
$BAC $JPM $MS
