Monitor the 5-year UST yield trajectory ahead of the October 2031 reset date; a rising rate environment would increase BAC's cost of capital on this tranche. The issuance is credit-neutral for common equity holders but provides a modest cushion to preferred dividend coverage.
Price Chart
Executive Summary
Bank of America issued $2 billion of Series WW preferred stock via depositary shares, raising $1.98 billion in net proceeds. The perpetual non-cumulative preferred stock carries a 7.200% fixed rate until October 2031, then resets quarterly at the 5-year U.S. Treasury rate plus 226 bps. This is a routine capital management transaction that bolsters Tier 1 capital without diluting common equity.
Key Facts
- Issued 2,000,000 depositary shares, each representing a 1/25th interest in Series WW preferred stock
- Total offering size: $2,000,000,000 at $1,000 per depositary share
- Net proceeds to issuer: $1,980,000,000
- Dividend rate: 7.200% fixed through October 27, 2031, then 5-year UST + 226 bps
- Liquidation preference: $25,000 per preferred share ($1,000 per depositary share)
- Expected ratings: Baa2 (Moody's) / BBB- (S&P) / BBB+ (Fitch)
- Non-cumulative dividends; redemption optional on or after First Reset Date (Oct 27, 2031)
- Settlement date: October 23, 2026 (T+3)
Financial Impact
$2 billion preferred stock issuance; net proceeds of $1.98 billion added to Tier 1 capital
Risk Factors
- Dividend rate resets to 5-year UST + 226 bps after 2031, creating interest rate exposure if Treasury yields rise significantly
- Non-cumulative feature means skipped dividends are lost permanently, though BAC has strong credit profile
- Perpetual maturity with no sinking fund; redemption is at issuer's option only
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-430566 |
| Document: d176604dex41.htm | 0001193125-26-430566 |
| Document: d176604d8k.htm | 0001193125-26-430566 |
| Document: d176604dex31.htm | 0001193125-26-430566 |
| Document: d176604dex51.htm | 0001193125-26-430566 |
| Document: 0001193125-26-430566-index-headers.html | 0001193125-26-430566 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $50.60 | awaiting T+20 | — | $50.52 (−0.16%) |
Oct 22, 2026 4d ago | 424B5 | $51.08 | awaiting T+20 | — | $50.52 (−1.10%) |
Oct 22, 2026 4d ago | Court Ruling | $50.56 | awaiting T+20 | — | $50.52 (+0.08%) |
Oct 21, 2026 5d ago | 8-K | $51.08 | awaiting T+20 | — | $50.52 (−1.10%) |
Oct 21, 2026 5d ago | Court Ruling | $51.08 | awaiting T+20 | — | $50.52 (−1.10%) |
Oct 19, 2026 7d ago | 424B5 | $50.39 | awaiting T+20 | — | $50.52 (+0.26%) |
Oct 16, 2026 9d ago | Institutional Cluster | $50.38 | awaiting T+20 | — | $50.52 (+0.28%) |
Oct 15, 2026 11d ago | ANALYST-UPGRADE | $51.70 | awaiting T+20 | — | $50.52 (−2.28%) |
Oct 15, 2026 11d ago | Court Ruling | $51.23 | awaiting T+20 | — | $50.52 (−1.39%) |
Oct 14, 2026 12d ago | 8-K | $51.39 | awaiting T+20 | — | $50.52 (+1.69%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers