(Bloomberg) -- Bank of America Corp. is the latest big Wall Street bank to tap the US investment-grade bond market after reporting earnings that beat analysts’ estimates.
The second-largest US bank is selling $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 will yield around 1.32 percentage points above Treasuries after initial discussions of around 1.55 percentage points, said the person, who asked not to be identified as the details are private.
A spokesperson for BofA declined to comment.
The offering comes a week after the lender posted earnings that topped estimates. 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 expectations.
BofA’s planned sale follows offerings from JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, which have collectively sold about $19.3 billion of high-grade bonds after also reporting earnings.
Earlier this month, JPMorgan credit analyst Kabir Caprihan forecast between $20 billion and $24 billion of sales from the Big Six US banks after they post results, more than the $15 billion the banks have typically raised in October over the prior decade.
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