Forget CDs Or Treasuries: Bank of America Offering 6.55% Yielding Bond

[Hitman]

Forget CDs Or Treasuries: Bank of America Offering 6.55% Yielding Bond

Oct. 18, 2023 8:56 AM ETBank of America Corporation (BAC)205 Comments32 Likes

Jeremy LaKosh

3.72K Followers

Follow

Summary

• Bank of America is issuing a 10-year corporate note with a 6.55% coupon rate, offering a higher interest rate than other banks and certificate of deposits.
• The bank's net interest income has remained flat but has risen above pre-pandemic levels, and deposit growth has declined for five consecutive quarters.
• Despite the decline in deposits, Bank of America's financial ratios are healthy, and its 6.55% bond offers a higher return than most investment grade fixed income.

 

Brandon Bell

 

Later this week, Bank of America (NYSE:BAC) is issuing a 10-year corporate note with a 6.55% coupon rate for fixed income investors. The bond is offering an interest rate 90 basis points higher than the highest coupon certificate of deposits currently on the open market. The interest rate is also higher than newly issued A or BBB debt from other banks, and 25 basis points higher than Citigroup, which is a peer bank with a notch lower credit rating. It also helps that Bank of America has "too big to fail" status.

 

Fidelity

[Spartan]

10K veste...600$ istada year ki..

manchi deal ye...

[ChillDude]

10 yrs money locked ayyidda ? How to buy ?

[ARYA]

3 hours ago, Spartan said:

10K veste...600$ istada year ki..

manchi deal ye...

200k este 13k istada

[godfather03]

3 hours ago, Spartan said:

10K veste...600$ istada year ki..

manchi deal ye...

Enni years unchali bank lo..confirm ga 10 years aa

[Pandubabu]

3 hours ago, Hitman said:

Forget CDs Or Treasuries: Bank of America Offering 6.55% Yielding Bond

Oct. 18, 2023 8:56 AM ETBank of America Corporation (BAC)205 Comments32 Likes

Jeremy LaKosh

3.72K Followers

Follow

Summary

• Bank of America is issuing a 10-year corporate note with a 6.55% coupon rate, offering a higher interest rate than other banks and certificate of deposits.
• The bank's net interest income has remained flat but has risen above pre-pandemic levels, and deposit growth has declined for five consecutive quarters.
• Despite the decline in deposits, Bank of America's financial ratios are healthy, and its 6.55% bond offers a higher return than most investment grade fixed income.

 

Brandon Bell

 

Later this week, Bank of America (NYSE:BAC) is issuing a 10-year corporate note with a 6.55% coupon rate for fixed income investors. The bond is offering an interest rate 90 basis points higher than the highest coupon certificate of deposits currently on the open market. The interest rate is also higher than newly issued A or BBB debt from other banks, and 25 basis points higher than Citigroup, which is a peer bank with a notch lower credit rating. It also helps that Bank of America has "too big to fail" status.

 

Fidelity

10 years 7% is too conservative 

[Spartan]

21 minutes ago, godfather03 said:

Enni years unchali bank lo..confirm ga 10 years aa

yes

[Narcos]

idi amaravathi bond lekke...mosapokandi

[ANNA_PLEASE_PETTU]

5 hours ago, Spartan said:

10K veste...600$ istada year ki..

manchi deal ye...

Anna India lo 2 rupees vadikisthay 2400$ vasthadi kadha anna, 

[Telugodura456]

Treasuries have tax benefits - these dont

[JaiBalayyaaa]

I bought 4k of 20y treasury bonds yesterday at 5.3% yield. 5.3% at zero risk vs 6.5% with finite risk.

[no01]

8 hours ago, ANNA_PLEASE_PETTU said:

Anna India lo 2 rupees vadikisthay 2400$ vasthadi kadha anna, 

appu theesukune vaadu jump aithe.

risk high, but agree gains kuda high ne.....own relatives, friends ne now a days nammalemu.....few months time ki interest pampistharu, then couple months delay...manam oorike phone cheyyali, malli ado chiraaku and uneasy.

last ki principal istharu kondaru, but interest lo couple months maafi adugutharu...why ante, relatives ki ee mathram help cheyyaleva...just 2 - 3 months interest ey kada, principal motham icha kada antaru.

personal experience

[Konebhar6]

14 hours ago, ANNA_PLEASE_PETTU said:

Anna India lo 2 rupees vadikisthay 2400$ vasthadi kadha anna, 

Money back techukovadam problem and conversion rate tho inkaa problem.