Bank of America Issues High-Yield Corporate Debt Despite Deposit Declines

Bank of America issuing a 10-year corporate note with a 6.55% coupon rate, higher than CDs, treasuries, and other bank debt.

Bank of America facing challenges from interest rates, but risks remain low. Net interest income up from pre-pandemic levels.

Bank of America deposits declining for 5 straight quarters, leading to increased borrowing and interest expense. But shareholder equity still growing.

Bank of America financial ratios healthy compared to sector. Building cash reserves and modest loan-to-deposit ratio.

BAC bond yields comparable to fixed-rate preferred shares. Offers higher return than most investment grade fixed income.