Stock Markets February 3, 2026

Bank of America Enters Wave of Wall Street Investment-Grade Bond Issuance

The bank launches six- and 11-year dollar notes as high-grade issuance accelerates to start 2026

By Ajmal Hussain BAC GS AXP V
Bank of America Enters Wave of Wall Street Investment-Grade Bond Issuance
BAC GS AXP V

Bank of America has started selling investment-grade U.S. dollar bonds, offering six-year fixed- and floating-rate notes and an 11-year fixed-rate security with initial price talk at 100 basis points over Treasuries. The move makes BofA the last of the major Wall Street banks to issue debt following fourth-quarter results, joining a broader surge in high-grade issuance that included $50.5 billion of offerings from the six largest banks last month and multiple transactions from corporate issuers such as American Express and Visa.

Key Points

  • Bank of America has launched investment-grade U.S. dollar bond offerings, including six-year fixed- and floating-rate notes and an 11-year fixed-rate security with initial price talk at 1 percentage point over Treasuries.
  • The bank is the last of the major Wall Street firms to issue debt following fourth-quarter results; the six largest banks issued $50.5 billion of high-grade notes last month, with Goldman Sachs leading via a record $16 billion deal.
  • U.S. investment-grade bond issuance has started 2026 at a record pace amid a global surge in supply - corporate issuers such as American Express and Visa also completed multi-part offerings, with Visa returning to dollar bonds for the first time since 2020.

Bank of America Corp. has opened a new offering of investment-grade dollar bonds, joining a wave of debt issuance from major Wall Street institutions and corporate borrowers.

According to market reports, the bank's package includes six-year notes available in both fixed- and floating-rate formats, in addition to an 11-year fixed-rate security. The 11-year tranche carried initial price talk at a premium of 1 percentage point above U.S. Treasuries.

This issuance makes Bank of America the final one among the biggest Wall Street firms to put debt on the market after the release of fourth-quarter results in January. Market activity has been brisk: the six largest Wall Street banks together brought $50.5 billion of high-grade notes to investors in the previous month, with Goldman Sachs Group Inc. leading that group through a record $16 billion transaction.

U.S. investment-grade bond sales have begun 2026 at what market participants are calling a record pace, forming part of a global increase in issuance. Borrowers appear to be taking advantage of reduced borrowing premiums to access the market.

On the trading day when Bank of America moved, the high-grade market registered nine deals. Among those were multi-part offerings from American Express Co. and Visa Inc. The Visa transaction was notable as the company's first dollar-denominated bond issuance since 2020.

The recent flurry of deals highlights a broad pick-up in high-grade supply across both banks and corporate issuers. Specific pricing details beyond the initial price talk for the 11-year note were not provided in the reports cited. The article does not detail how proceeds will be used by issuers, nor does it provide follow-up information on investor demand beyond the tally of deals and prior month issuance totals.

Risks

  • The article notes borrowers are capitalizing on reduced borrowing premiums but does not provide information on whether those lower premiums will persist, leaving future financing costs uncertain for issuers and investors - this impacts banking and corporate credit markets.
  • Only initial price talk for the 11-year note is cited; the article does not report final pricing or full investor demand for the new issues, creating uncertainty about execution and absorption - this affects fixed-income investors and market liquidity.
  • The coverage does not indicate how proceeds from the offerings will be deployed by issuers, so the implications for corporate balance sheets and capital allocation remain unspecified - this has relevance for issuer sectors across banking and corporate borrowers.

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