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Bank of America to set record for the largest bond sale

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Miguel A. Rodriguez
Miguel A. Rodriguez
21 April 2021
Bank of America revealed a $15 billion bond deal, the largest ever from a bank

The week seems to have started on the right foot for Bank of America. According to data from Bloomberg.com, the bank is ready to sell $15 million of bonds, which will set a fresh record for the largest bond sale conducted by a bank.

Bank of America’s announcement came just a day after JP Morgan Chase sold what was at the time the biggest offering. The latter managed to raise $13 billion on Thursday.

According to a person familiar with the matter, investors poured approximately $25 billion of orders into the deal, which will help Bank of America to borrow at cheaper rates than initially offered.

The announcement came after the bank reported quarterly figures that came ahead of consensus. In Q1 2021, it had an EPS of 86 cents on revenues of $22.9 billion. The market was looking for 66 cents a share, and $22.1 billion in revenue.

Following the news, Bank of America stock price closed 1.06% higher. Its shares surged 32% year to date.

Sources: Bloomberg.com, finance.yahoo.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.