Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bank of America Sells First Structured Note Tied to Metals Index

Bank of America Corp. sold $24.1 million of 14-month notes tied to precious metals, the first offering linked to its proprietary index that tracks gold, platinum, palladium and silver.

The securities, issued Jan. 30, yield three times the gains of the Merrill Lynch Commodity Index Extra Precious Metals Plus - Excess Return up to 13.05 percent with no protection against losses and all capital at risk, according to a prospectus filed with the U.S. Securities and Exchange Commission. The bank distributed the notes for a 2 percent fee and charges a 0.75 percent hedging fee.

The index was created in 2008 and tracks a weighted basket of futures on the four metals, according to the prospectus. The weighting of the assets changes and is determined by the bank. It is a modified version of the Merrill Lynch Commodity Index Extra, which tracks commodity segments.

Matt Card, a spokesman for the bank, declined to comment on the note.

Banks create structured notes by packaging debt with derivatives to offer customized bets to retail investors while earning fees and raising money. Derivatives are contracts whose value is derived from stocks, bonds, commodities and currencies, or events such as changes in interest rates or the weather.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.