The cost of capital, America edition
Bank of America that is.
BofA is marketing $13B of securities according to Bloomberg:
Why so much? Their writedown was only $5B. What do they need the other 7 for?
BofA is marketing $13B of securities according to Bloomberg:
The sale will be split between $5 billion to $6 billion of perpetual securities that may yield 8 percent, and $6 billion to $7 billion of convertibles that may yield 7.25 percent to 7.75 percent, said the person [familiar with the offering]
Why so much? Their writedown was only $5B. What do they need the other 7 for?
Labels: Capital
posted by David Murphy at 22:06
1 Comments:
There is a lot more hurt coming.
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