Bank of America Sells Biggest Note Tied to MidCap Index in 2012

Bank of America Corp. sold $23.8 million of 14-month notes tied to the Standard & Poor’s MidCap 400 Index, the largest offering linked to the benchmark in more than a year.

The securities, issued Nov. 29, yield three times the gains of the index up to 14.7 percent with no protection against losses, according to a prospectus filed with the U.S. Securities and Exchange Commission. Investors can lose all of their investment if the index plummets. The bank distributed the notes for a 2 percent fee.

Matt Card, a spokesman for Bank of America, declined to comment on the offering.

The S&P MidCap 400 Index, which comprises the stocks of 400 U.S. companies with market capitalization of $1 billion to $4.4 billion, gained 14 percent this year to 999.8 as of closing yesterday. The broader Standard & Poor’s 500 Index rose 12 percent this year to 1,409.3.

Royal Bank of Canada had the biggest previous offering on Sept. 29 of last year, $24.4 million of 14-month notes that yielded three times the index’s gains, capped at 26.34 percent with no loss protection, according to a prospectus filed with the SEC.

To contact the reporter on this story: Kevin Dugan in New York at

To contact the editor responsible for this story: Alan Goldstein at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.