Bank of America raises $9 Billion through bond sale
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New York: Bank of America, the biggest U.S. retail bank, sold $9 billion of debt in the largest bank bond sale as the Federal Deposit Insurance agreed to guarantee the debt, reports Bloomberg press. Bank of America's sale includes $6.75 billion of 3.125 percent fixed-rate notes due June 15, 2012, $1 billion of two-year notes that float with the three-month London interbank offered rate, $750 million of three-year notes that float with three-month Libor, and $500 million of three-year notes that float with one-month Libor, show Bloomberg data. The fixed-rate bonds priced to yield 201 basis points more than U.S. Treasuries of similar maturity, Bloomberg data show. The two-year notes pay 50 basis points more than three-month Libor, the three-year notes pay 82 basis points more than three-month Libor, and the three-year notes floating with one-month Libor priced to yield 76 basis points more, the data show. A basis point is 0.01 percentage point. Citigroup and Wells Fargo are also marketing FDIC-backed debt in the second week of bank issuance spurred by the FDIC's Temporary Liquidity Guarantee Program.

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