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 is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com