BAC-WT - Bank of America Warrants

[Sunrider]

Dear all

 

Is there anyone here with access to a Bloomberg terminal or similar that could produce a list of all outstanding BAC bonds and notes, with maturity and/or earliest redemption date, amount outstanding (or face value) and rate? I've searched online and haven't found anything and I'm a bit loath to try and piece it together manually. If someone could post a screenshot or spreadsheet that would be fantastic!

 

Thank you - C.

[ourkid8]

This is actually a great question!  When the mid year capital tests start, we will know what BAC will be looking to redeem to continue to improve it's capital structure.  (I am especially interested where Buffett's preferreds are in terms of interest rates)

 

tks,

s

 

Dear all

 

Is there anyone here with access to a Bloomberg terminal or similar that could produce a list of all outstanding BAC bonds and notes, with maturity and/or earliest redemption date, amount outstanding (or face value) and rate? I've searched online and haven't found anything and I'm a bit loath to try and piece it together manually. If someone could post a screenshot or spreadsheet that would be fantastic!

 

Thank you - C.

[Sunrider]

The prefs you can find in the 10-K and it's fairly clear which ones they'd go after next (outside negotiated exchanges). Working on a post on that. What I don't have a list for is the bonds & notes outstanding - that would be really helpful!

 

Thanks - C.

 

This is actually a great question!  When the mid year capital tests start, we will know what BAC will be looking to redeem to continue to improve it's capital structure.  (I am especially interested where Buffett's preferreds are in terms of interest rates)

 

tks,

s

 

Dear all

 

Is there anyone here with access to a Bloomberg terminal or similar that could produce a list of all outstanding BAC bonds and notes, with maturity and/or earliest redemption date, amount outstanding (or face value) and rate? I've searched online and haven't found anything and I'm a bit loath to try and piece it together manually. If someone could post a screenshot or spreadsheet that would be fantastic!

 

Thank you - C.

[hyten1]

you guys should take a look at this site

 

http://www.quantumonline.com/

 

it helps a little

[fareastwarriors]

Ambani Is Leaving BofA's Board

 

http://online.wsj.com/article/SB10001424127887323393304578363181508771240.html?mod=WSJ_business_whatsNews

 

Bank of America Corp. BAC +3.80% director Mukesh D. Ambani is leaving the board to join the bank's global advisory council, the bank said Friday. He joined the board in 2011, and the bank hasn't said whether or not it will fill the vacancy.

 

Mr. Ambani, chairman and managing director of India's Reliance Industries Ltd., 500325.BY -1.96% is the latest in a series of exits from Bank of America's 18-member board. In January, director Robert W. Scully announced he was stepping down.

 

Three other board members—Donald E. Powell, Charles O. Rossotti and Virgis Colbert—are expected to step down this year, but no formal announcements have been made, according to people familiar with the matter.

 

All three men are nearing, or exceed, the board's retirement age of 72. The bank has brought on six new board members in the past year, including two new members in January.

 

Mr. Ambani, 55 years old and India's richest man, is leaving to join a nonfiduciary group of global business, policy and academic experts set up by the bank in January to advise Chief Executive Brian Moynihan on "world-wide relationships."

 

Mr. Moynihan said the bank's global advisory council is "an ideal venue for the company to continue to benefit from Mukesh's judgment and insights."

[Sunrider]

you guys should take a look at this site

 

http://www.quantumonline.com/

 

it helps a little

 

Thanks hyten1 - if I'm not mistaken this shows mainly TRUPS and Prefs as well as notes linked to something or other that's been issued by BAC or ML, but it doesn't show straight forward outstanding notes/bonds?

 

Thanks - C.

[xazp]

Finra maintains information on bonds:  http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/default.aspx

 

you guys should take a look at this site

 

http://www.quantumonline.com/

 

it helps a little

 

Thanks hyten1 - if I'm not mistaken this shows mainly TRUPS and Prefs as well as notes linked to something or other that's been issued by BAC or ML, but it doesn't show straight forward outstanding notes/bonds?

 

Thanks - C.

[redskin]

Finra maintains information on bonds:  http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/default.aspx

 

you guys should take a look at this site

 

http://www.quantumonline.com/

 

it helps a little

 

http://media.corporate-ir.net/media_files/IROL/71/71595/BAC-12.31.2012-10K%20w%20exhibits.pdf

 

10-k  Pg. 223 has summary of long term debt.  Pg. 240 shows list of preferreds outstanding.

 

Thanks hyten1 - if I'm not mistaken this shows mainly TRUPS and Prefs as well as notes linked to something or other that's been issued by BAC or ML, but it doesn't show straight forward outstanding notes/bonds?

 

Thanks - C.

[Sunrider]

Yes, as I noted in an earlier post - the information on Prefs is in the 10-K. The information on long term debt does not appear to be.

 

 

Finra maintains information on bonds:  http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/default.aspx

 

you guys should take a look at this site

 

http://www.quantumonline.com/

 

it helps a little

 

http://media.corporate-ir.net/media_files/IROL/71/71595/BAC-12.31.2012-10K%20w%20exhibits.pdf

 

10-k  Pg. 223 has summary of long term debt.  Pg. 240 shows list of preferreds outstanding.

 

Thanks hyten1 - if I'm not mistaken this shows mainly TRUPS and Prefs as well as notes linked to something or other that's been issued by BAC or ML, but it doesn't show straight forward outstanding notes/bonds?

 

Thanks - C.

[MYDemaray]

xazp (or anyone) -- any thoughts on some of these rulings coming out and any relevance to BAC?

 

http://online.wsj.com/article/SB10001424127887323869604578368202752327388.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

http://www.bloomberg.com/news/2013-03-15/morgan-stanley-deutsche-must-face-allstate-mortgage-suit.html?cmpid=yhoo

 

 

[xazp]

I think they're both marginally negative for BAC.  Thanks for posting them - I had not seen these cases. 

 

The first one is different than other rulings that BAC/CFC have had, which said that the class action could only apply to the tranches of the specific securities the original litigant bought.  Obviously since this is the supreme court, their opinion matters more than the previous rulings I've read. 

The ruling isn't immediately relevant to the big $$ claims against BAC, but would be if you made the following assumptions:  A) the BONY settlement is overturned; B) new class actions are filed afterwards; and C) those are found to be within the statute of limitations.  My opinion remains that the statute of limitations is an obstacle that will prevent large class actions from forming in 2013 and beyond.

 

The second one directly involves Merrill.  Some of allstate's claims were dismissed some claims and some were not.  The article is not sufficiently specific and I don't have the actual court ruling. I would guess the judge dismissed federal securities claims because they are after the statute of limitations, while approving the NY state fraud claims which were still within the statute of limitation in 2011.  If my guess is right, it's consistent with other litigation on the topic.  Note that fraud is fairly difficult to prove, so it's the harder path to recovering damages. 

 

 

 

 

 

 

xazp (or anyone) -- any thoughts on some of these rulings coming out and any relevance to BAC?

 

http://online.wsj.com/article/SB10001424127887323869604578368202752327388.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

http://www.bloomberg.com/news/2013-03-15/morgan-stanley-deutsche-must-face-allstate-mortgage-suit.html?cmpid=yhoo

[MYDemaray]

Some more commentary on this by Alison Frankel: http://newsandinsight.thomsonreuters.com/Legal/News/2013/03_-_March/LA_judge_adopts_2nd_Circuit_s_broad_view_of_MBS_pleading_standards/

 

she brings up some of the potential implications for tolling the statute of limitations...

[xazp]

Good.  So I agree with Frankel.  What she's saying is that the only bonds that are subject to lawsuit in (say 2011 and afterward) are those bonds which already were the subject of class action lawsuits. 

 

For Countrywide, that amount is quite small. 

http://www.bloomberg.com/news/2011-07-08/countrywide-wages-victorious-tranche-warfare-against-mortgage-debt-holders.html

 

So originally the litigants tried to sue for $351 billion, over all 451 MBS that countrywide had issued.  The judge ruled that only 14 of the MBS and $20Bn face value had been subject to lawsuits within the statute of limitations.  Then she further reduced it to only specific tranches of the MBS.  That reduced the face value to $2.6Bn.  This is why I say, I don't think you can sue in 2013 and do any better. 

 

 

 

 

 

 

Some more commentary on this by Alison Frankel: http://newsandinsight.thomsonreuters.com/Legal/News/2013/03_-_March/LA_judge_adopts_2nd_Circuit_s_broad_view_of_MBS_pleading_standards/

 

she brings up some of the potential implications for tolling the statute of limitations...

[Parsad]

I don't really care which way the analyst wind blows, but I thought I would still report what Meredith Whitney said about BAC today.  Cheers!

 

http://blogs.barrons.com/stockstowatchtoday/2013/03/18/bank-of-america-is-undervalued-whitney-says/?mod=yahoobarrons

[sampr01]

Hi Sanjeev

 

May be good for your short term calls ;D. if you still have them

 

I don't really care which way the analyst wind blows, but I thought I would still report what Meredith Whitney said about BAC today.  Cheers!

 

http://blogs.barrons.com/stockstowatchtoday/2013/03/18/bank-of-america-is-undervalued-whitney-says/?mod=yahoobarrons

[Parsad]

Hi Sanjeev

 

May be good for your short term calls ;D. if you still have them

 

I don't really care which way the analyst wind blows, but I thought I would still report what Meredith Whitney said about BAC today.  Cheers!

 

http://blogs.barrons.com/stockstowatchtoday/2013/03/18/bank-of-america-is-undervalued-whitney-says/?mod=yahoobarrons

 

Only 20% left.  They will be gone in the next couple of days.  Cheers!

[valueinvesting101]

BAC outstanding preferred

[Sunrider]

BAC outstanding preferred

 

Hiya

 

Is there any way you can pull up and post a screen on the outstanding bonds / notes with rates and earliest call dates?

 

Thank you - C.

[claphands22]

Some comments from an analyst:

 

BAC - Here's why BAC should continue to close in on 1.0x TBV

 

Stock buybacks and preferred equity redemptions will likely drive BAC's CCAR requests

 

We expect BAC to redeem at least $5.5bn of preferred equity: As shown on Table 1, BAC has $2.86bn of preferred equity at a cost of 8.2% that is callable on 5/1/13 and $2.67bn at 8.625% that is callable on 5/28/13. We expect BAC to redeem each of these preferreds as soon as they are callable. BAC could also redeem a $951mn piece costing 7.25%. We expect BAC to receive approval to redeem these preferreds during the 1Q13 CCAR. The annual interest savings would be about $535mn or about $0.05 per share. 

 

Common stock buybacks over dividends: We also think BAC will seek Fed authorization to buyback $4-5bn of common equity or about 30-35% of our estimate for its 2013 net income of nearly $14bn. We foresee a net buyback of $1.5-2.0bn after $2.5-3.0bn of issuance for stock-based incentive comp. Also, as long as BAC is trading at or below 1x TBV, we think mgmt will focus on buying back stock and redeeming expensive preferred equity instead of raising the common dividend (which probably requires a better track record of GAAP earnings consistency than BAC has established through 3Q12).   

 

Basel 3 capital ratios should continue to surge: Investors should also note that in 2013 and beyond, BAC should be able to utilize its $28.5bn DTA. Thus, it will likely accrue regulatory capital at nearly the rate of its pre-tax earnings instead of its after-tax earnings. We also expect an additional modest reduction in B3 RWAs. Thus, if our stock buyback assumption is correct, BAC should finish 2013 with a B3 Tier 1 common equity ratio of about 10.7%.   

 

Thus, BAC should continue to drive toward 1x TBV based on: 1) It should finish 2013 with a B3T1C ratio above 10.5% (well above its G-SIB min. of 8.5%), which means BAC should have huge firepower to buy back stock in 2014-15. 2) Even if BAC has to absorb another $5-$10bn of mtge repo costs (above our $2-4bn est.), that would only reduce its B3T1C ratio by 25-50bps and would have no material impact on its long-term earnings power. 3) We conservatively forecast ROTCE of 9.5% in 2014 & 10.5% in 2015. 4) As BAC continues to de-risk, it will become a large (but lower risk and more efficient) US-based consumer and commercial bank with Merrill Lynch attached, and its ROTCE should consistently exceed 10%. We think large-cap value PMs will pay at least 1x TBV for that, and our year-end 2013 TBV estimate is $14.65.   

 

At our recent banking conference, CFO Bruce Thompson remained upbeat and noted the following: 1) expense saves are on track with additional New BAC savings of at least $600mn quarterly and LAS savings of at least $1bn quarterly from 4Q12 to 4Q13 (i.e. $6.4bn of annualized savings over the next 12 months), 2) Mgmt is very focused on holding the line on core op. costs and delivering the savings to the bottom line. And 3) $22.5bn is a core quarterly revenue run-rate from which BAC can grow based on stable quarterly NII of ~$10.5bn this year (and perhaps some growth in 2014) as well as growth in its Wealth Mgmt, investment banking, and capital markets businesses.

 

I can see why people become enamored with analysts. Whoever this analyst is, they got the capital return plan right on the nose.

 

Thanks for the post dcollon.

[thomcapital]

Some comments from an analyst:

 

BAC - Here's why BAC should continue to close in on 1.0x TBV

 

Stock buybacks and preferred equity redemptions will likely drive BAC's CCAR requests

 

We expect BAC to redeem at least $5.5bn of preferred equity: As shown on Table 1, BAC has $2.86bn of preferred equity at a cost of 8.2% that is callable on 5/1/13 and $2.67bn at 8.625% that is callable on 5/28/13. We expect BAC to redeem each of these preferreds as soon as they are callable. BAC could also redeem a $951mn piece costing 7.25%. We expect BAC to receive approval to redeem these preferreds during the 1Q13 CCAR. The annual interest savings would be about $535mn or about $0.05 per share. 

 

Common stock buybacks over dividends: We also think BAC will seek Fed authorization to buyback $4-5bn of common equity or about 30-35% of our estimate for its 2013 net income of nearly $14bn. We foresee a net buyback of $1.5-2.0bn after $2.5-3.0bn of issuance for stock-based incentive comp. Also, as long as BAC is trading at or below 1x TBV, we think mgmt will focus on buying back stock and redeeming expensive preferred equity instead of raising the common dividend (which probably requires a better track record of GAAP earnings consistency than BAC has established through 3Q12).   

 

Basel 3 capital ratios should continue to surge: Investors should also note that in 2013 and beyond, BAC should be able to utilize its $28.5bn DTA. Thus, it will likely accrue regulatory capital at nearly the rate of its pre-tax earnings instead of its after-tax earnings. We also expect an additional modest reduction in B3 RWAs. Thus, if our stock buyback assumption is correct, BAC should finish 2013 with a B3 Tier 1 common equity ratio of about 10.7%.   

 

Thus, BAC should continue to drive toward 1x TBV based on: 1) It should finish 2013 with a B3T1C ratio above 10.5% (well above its G-SIB min. of 8.5%), which means BAC should have huge firepower to buy back stock in 2014-15. 2) Even if BAC has to absorb another $5-$10bn of mtge repo costs (above our $2-4bn est.), that would only reduce its B3T1C ratio by 25-50bps and would have no material impact on its long-term earnings power. 3) We conservatively forecast ROTCE of 9.5% in 2014 & 10.5% in 2015. 4) As BAC continues to de-risk, it will become a large (but lower risk and more efficient) US-based consumer and commercial bank with Merrill Lynch attached, and its ROTCE should consistently exceed 10%. We think large-cap value PMs will pay at least 1x TBV for that, and our year-end 2013 TBV estimate is $14.65.   

 

At our recent banking conference, CFO Bruce Thompson remained upbeat and noted the following: 1) expense saves are on track with additional New BAC savings of at least $600mn quarterly and LAS savings of at least $1bn quarterly from 4Q12 to 4Q13 (i.e. $6.4bn of annualized savings over the next 12 months), 2) Mgmt is very focused on holding the line on core op. costs and delivering the savings to the bottom line. And 3) $22.5bn is a core quarterly revenue run-rate from which BAC can grow based on stable quarterly NII of ~$10.5bn this year (and perhaps some growth in 2014) as well as growth in its Wealth Mgmt, investment banking, and capital markets businesses.

 

I can see why people become enamored with analysts. Whoever this analyst is, they got the capital return plan right on the nose.

 

Thanks for the post dcollon.

 

I'm pretty sure it was the fellow over at ISI...

[Uccmal]

With BAC allowed to do buy backs now, what is the procedure.  Do they have to resgister a Normal Course Issuer Bid?

 

Is there a way we can determine if they are buying back stock in something close to real time?

(in between Quarterly results).

 

I am thinking they will want a mixture of stealth buying and bragging rights. 

 

The stock trades at least $1.2 billion per day.  The could literally spend the 5 billion in one week buying 25% of the daily trade.  The reason I am interested is that I want to see this implemented ASAP, before some sort of Whale episode stalls it.

 

Thoughts?

[CONeal]

With BAC allowed to do buy backs now, what is the procedure.  Do they have to resgister a Normal Course Issuer Bid?

 

Is there a way we can determine if they are buying back stock in something close to real time?

(in between Quarterly results).

 

I am thinking they will want a mixture of stealth buying and bragging rights. 

 

The stock trades at least 1.2 billion shares per day.  The could literally spend the 5 billion in one week buying 25% of the daily trade.  The reason I am interested is that I want to see this implemented ASAP, before some sort of Whale episode stalls it.

 

Thoughts?

 

Even though the annual meeting last year was a real pain in the ass bc of protestors and people complaining about wanting the bank to buy their loan and forgive it (BAC didn't own the loan) tempted to go this year to see if BM will shed any light on under what conditions would they do the buybacks.  Under TBV, Under BV, some other logic?

[Sunrider]

Hello all

 

the long discussion on BAC leverage has made me think about this back and forth for some time - and it forced me to re-evaluate my assumptions. At the end of the day, a lot of the argument comes back to what you assume BAC's price to be at a specific date - e.g. by Jan 2015 (and if you're willing to roll, by warrant expiration) ... and what the price does in between and how much capital you keep aside to potentially increase exposure if the stock declines.

 

Anyway - the attached is a simple pay-off table I put together for my purposes to see what strategy would be best to 2015 under various price assumptions. Generally speaking, you can also use this for price assumptions prior to that date, just beware that the option prices won't change linearly (e.g. as we go into 2014 and in particular Q3 14, they will start loosing value quite fast).

 

So, as you can see, the cut-over point from using 10's to 12's is somewhere between 16 and 17. The cut-over from common to 10's somewhere between 14 and 15.

 

Maybe it's of use to some of you ....

 

C.

Pay-off_table_BAC_20130322.xlsx

[JEast]

BAC News:

 

Another $72m real estate disposal as part of the refocus.

 

http://www.bizjournals.com/charlotte/blog/real_estate/2013/03/wake-forest-building-uptown-sells-for.html

 

Cheers

JEast

[racemize]

Wow, there is some serious bullishness in this article and in the comments--the assumptions seem a bit shallow and agressive to me:

 

http://seekingalpha.com/article/1295291-fundamentals-could-push-bank-of-america-to-18-in-the-next-12-months?source=yahoo