Bank of America Corp (NYSE: BAC) sold $65 million in structured notes which are linked to its Investable Volatility Index.
The offering, which occurred on September 22nd, was the largest in the United States that was tied to a proprietary index since May, when JPMorgan Chase & Co. (NYSE: JPM) sold $150 million in securities tied to its Contag Beta Alternate Benchmark Class A Excess Return Index.
The five-year notes will return any gains or losses on the index minus a two percent charge up-front and a 0.75% annual fee, according to a filing with the U.S. Securities and Exchange Commission. The Investable Volatility Index tracks the pricing of options on the Standard & Poor’s 500 Index. Bank of America Corp (NYSE: BAC)’s volatility index has fallen about 5% this year, while the S&P 500 rose by about 3%.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets, Global Wealth & Investment Management, with the remaining operations recorded in All Other.
Shares of Bank of America Corp (NYSE: BAC) traded down 2.65% during mid-day trading on Monday.
