(Bloomberg) — Bank of America became the latest Wall Street giant to enter the U.S. investment-grade bond market, posting third-quarter results that beat analysts’ expectations.
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The second-largest U.S. bank sold $3.5 billion in one tranche of subordinated debt due in 2011 and redeemable in 10 years, according to people familiar with the matter. The yield on the voluntary agreement was 1.32 percentage points higher than U.S. Treasuries, up from about 1.55 percentage points in initial talks, said the person, who requested anonymity because the details are private. .
A Bank of America spokeswoman declined to comment.
The offering comes a week after the lender announced better-than-expected results. Revenues from stocks, bonds, currencies and commodities rose 12% to $4.93 billion in the third quarter, while investment banking also beat expectations.
Peers JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley sold a combined $19.3 billion in high-grade debt last week following their quarterly reports. Earlier this month, JPMorgan credit analyst Kabir Kaprihan predicted that the six largest U.S. banks would sell $25 billion in banknotes this month, significantly higher than the group’s 10-year October average. exceeds.
Bank of America was one of two companies selling U.S. investment-grade bonds on Tuesday.
(Update pricing details.)
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