Updated:
Original:

Investors No Longer Think 'Mayday' When Bank Of America Comes To Mind

Author:

You can stop with the fire drills.

The bank sold $1.5 billion of five-year notes as bond investors bet the biggest U.S. lender by assets has overcome the worst of its problems tied to soured mortgages. BofA issued 3.625 percent notes today that yield 172 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The Charlotte, North Carolina-based lender last sold five-year notes in August at a 230 basis-point spread, according to data compiled by Bloomberg. “Investors are no longer concerned about a worst-case scenario and are beginning to demonstrate some more optimism about B of A’s future,” said Allerton Smith, senior director of the capital markets research group at Moody’s Corp. “There’s a fair degree of optimism about the name.” [Bloomberg]

Related