CHARLOTTE, North Carolina–(BUSINESS WIRE)–Bank of America, NA today announced the issuance of a $1 billion six-month floating rate banknote referencing the one-month duration of the Bloomberg Short-Term Index Bank Yield IndexSM (BSBY) to several investors earlier this week. BSBY adheres to the International Organization of Securities Commissions (IOSCO) Financial Benchmark Principles and measures the average returns at which major global banks access wholesale unsecured US dollar funding. It is dynamic, credit sensitive and reflects the marginal funding cost at one day, one month, three months, six months and twelve months.
“We are pleased to be able to help lead the market’s transition away from LIBOR,” said Bank of America Treasurer Andrei Magasiner. “The development of a robust alternative term rate, such as BSBY, is an important development for traditional banking products and for our customers.
“We are constantly looking for ways to innovate and bring creative solutions to the market,” said Andrew Karp, Head of Quality Capital Markets. “We have seen US market participants’ interest in a credit-sensitive rate alongside SOFR in the transition to LIBOR. We believe BSBY is a viable alternative and expect to see more transactions referencing credit-sensitive rates in the future.
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Bank of America
Bank of America is one of the world’s leading financial institutions, serving individuals, small and medium-sized businesses, and large corporations with a full range of banking, investment, asset management, and banking products and services. other financial and risk management products and services. The company offers unparalleled convenience in the United States, serving approximately 66 million consumer and small business customers with approximately 4,300 retail financial centers, including approximately 2,700 lending centers, 2,600 financial centers with a financial solutions advisor from investment for consumers and about 2,400 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 40 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving businesses, governments, institutions and individuals worldwide. whole world. Bank of America provides industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves customers through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation (NYSE: BAC) shares are listed on the New York Stock Exchange.
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