Bank of America Returns With Perpetual Bond Sale Days After $8 Billion Raise

Bank of America Corp. launched its second investment-grade bond sale in days, offering perpetual notes after last week's $8 billion capital raising. The bonds would be first callable in five years, with initial price discussions indicating a yield of 7.5% to 7.625%, according to a person familiar with the matter. The company sold $2.5 billion of such notes in July 2025 at a 6.25% yield. The offering follows an unusual Friday high-grade sale on Oct. 16, as the bank braved a turbulent credit market that disrupted fundraising plans for numerous borrowers. Credit risk for U.S. investment-grade bonds rose after logging its highest close since March 31 on Monday, with markets uncertain Tuesday as fresh AI-fueled worries sent stocks lower and Treasuries higher. Bank of America shares finished yesterday at their lowest since May 15, extending a post-earnings decline after both its stock and fixed-income traders' results fell short of estimates. The bank also disclosed a $1.2 billion charge for fines over money laundering and sanctions violations. It has sold $25 billion of investment-grade notes this year.