BofA Sells $3.25 Billion of Bonds After Strong Earnings Report

  • Lender sells fixed-to-floating-rate notes, 11-year maturity
  • Wall Street banks have far exceeded earnings expectations

   

Photographer: Jeenah Moon/Bloomberg
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Bank of America Corp. tapped the U.S. investment-grade bond market Friday with a $3.25 billion self-led deal, joining Morgan Stanley in issuing new debt following a better-than-expected earnings report.

The bank sold 11-year fixed-to-floating-rate notesBloomberg Terminal to yield 1 percentage point above Treasuries, after initial price discussions in the area of 1.15 percentage points, according to a person familiar with the matter. The proceeds are earmarked for general corporate purposes.