(Bloomberg) — Bank of America Corp. is the latest big Wall Street bank to tap the US investment-grade bond market after reporting third-quarter results that beat analysts’ estimates.
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The second-largest US bank sold $3.5 billion of subordinated bonds in a single tranche maturing in 11 years, and which are callable after 10, according to a person with knowledge of the matter. The self-led deal yields 1.32 percentage point above Treasuries after initial discussions of around 1.55 percentage point, said the person, who asked not to be identified as the details are private.
A spokesperson for Bank of America declined to comment.
The offering comes a week after the lender posted results that topped expectations. Revenue from equity and fixed income, currencies and commodities trading rose 12% to $4.93 billion in the third quarter, while investment banking also outperformed forecasts.
Peers JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley collectively sold $19.3 billion of high-grade bonds last week following their quarterly reports. Earlier this month, JPMorgan credit analyst Kabir Caprihan forecast the Big Six US banks would sell as much as $25 billion of notes this month, well above the decade’s average for October by the group.
Bank of America was one of two firms to sell US investment-grade bonds Tuesday.
(Updates with pricing details.)
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