Bank of America back in market after last week's $8B sale

(Bloomberg) -- Bank of America Corp. has kicked off its second investment-grade bond sale in days, offering perpetual notes following last week's $8 billion capital raising.

The bonds would be first callable in five years, and initial price discussions involve a yield of 7.5% to 7.625%, according to a person familiar with the matter who asked not to be identified because they're not authorized to speak publicly. The company sold $2.5 billion of such notes in July 2025 at a 6.25% yield.

Bank of America brought an unusual Friday high-grade bond offering on Oct. 16, braving the market after a turbulent week in credit markets disrupted fundraising plans for numerous borrowers.

Markets are uncertain Tuesday, with a fresh round of AI-fueled worries sending stocks lower and Treasuries higher. A measure of credit risk for US investment-grade bonds rose after logging its highest close since March 31 on Monday.

The firm's shares finished yesterday at their lowest since May 15, extending a post-earnings decline as Bank of America reported that both its stock and fixed-income traders' results fell short of estimates. It also disclosed a $1.2 billion charge for fines for money laundering and sanctions violations.

Bank of America has sold $25 billion of investment-grade notes this year.