Bank of America Introduces High-Yield Bond and Raises Dividend

Bank of America is set to issue a 10-year corporate note with a 6.55% coupon rate, offering a higher yield than CDs or newly issued debt from other banks. Despite facing challenges related to the interest rate environment, the bank's net interest income has risen above pre-pandemic levels. While total deposits have declined, the bank's increased borrowings have not affected its shareholder equity. Bank of America also has healthy financial ratios and its 6.55% bond is yielding at a comparable rate to its fixed rate preferred shares. However, investors should be aware of the call risk associated with the bonds.