Bank of America to sell $15 B bond sale just a day after JPMorgan sells $13 B

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Bank of America to sell $15 B bond sale just a day after JPMorgan sells $13 B

The JPMorgan Chase Co. is poised to sell$ 15 billion of bonds, setting a new record for the largest bond sale by a bank just a day after rival Bank of America Corp. sold what was then the biggest such offering, according to Bloomberg data compiled by Bloomberg.

According to a person with knowledge of the matter, the investors poured about$ 25 billion of orders into the deal, which will help BofA borrow at cheaper rates than it initially offered. JPMorgan raised$ 13 billion on Thursday; major U.S. banks are pouncing on historically low rates to replenish capital and to get cheap funding and investors have responded enthusiastically.

On Thursday, Goldman sold a 6.6% note from Goldman Sachs Group Inc. For more news: Big banks bust bond market as they push into cheap rates. Treasuries rallied Thursday as Goldman Sachs and JPMorgan were selling debt, driving 30 year rates to the lowest since early March.

Corporate bond yields are usually set according to their spread to the U.S. rates.

On Thursday, Bank of America joined other banks in reporting strong results from Wall Street operations with revenues from sales and trading rising 17% and equity underwriting fees more than tripling. The bank also released$ 2.7 billion in credit reserves.

The largest part of the four-part offering on Friday- a 21-year security -- is set to yield 115 basis points above Treasuries, according to the person who asked not to be identified as the details are private. Bank of America is the general bookrunner on the sale and the proceeds will be used for sole corporate purposes, said the person.

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