New York, Jan 9, 2026, 18:53 EST — After-hours
- Bank of America said it will redeem $3 billion of senior notes on Jan. 20
- BAC shares slipped in late trading as investors sized up rates and bank earnings
- Traders are also watching next week’s inflation data and the Fed calendar
Bank of America shares were down 0.7% at $55.85 in after-hours trading on Friday, after the bank said it will redeem $3 billion of senior notes due January 2027. The stock traded between $55.79 and $56.60 during the day.
The redemption lands just days before Bank of America’s quarterly results, with investors focused on what higher-for-longer rates do to funding costs. The notes were set to shift from a fixed 5.08% coupon to a floating rate linked to SOFR — the Secured Overnight Financing Rate — plus 1.29 percentage points from Jan. 20.
Rates were the bigger backdrop. U.S. payrolls rose by 50,000 in December and the unemployment rate dipped to 4.4%, Reuters reported, nudging rate-cut bets around the Fed’s next meetings. “The drop in the U.S. jobless rate in December should douse the Fed’s recent urgency,” said Olu Sonola, head of U.S. economic research at Fitch Ratings. Reuters
Peers were mixed after hours. JPMorgan was off 0.2% and Citigroup added 0.6%, as investors looked ahead to a busy week of big-bank results. JPMorgan is due to report on Jan. 13, while Citigroup reports on Jan. 14.
Bank of America said it will redeem the notes at 100% of principal plus accrued and unpaid interest up to, but excluding, the redemption date. Interest will stop accruing on Jan. 20, it said.
For equity investors, the bigger tell will be what management says about net interest income — the gap between what a bank earns on loans and pays on deposits — and whether deposit costs keep cooling. Traders will also be listening for any shift in language on credit-card and commercial loan losses after a year of choppy growth signals.
But the setup cuts both ways. A weaker economy can hit loan demand and push up provisions for credit losses, even if falling yields eventually ease deposit pressure. And if the yield curve stays flat, banks can struggle to widen margins even when the Fed holds steady.
Next up: the U.S. consumer price index report for December on Jan. 13, followed by Bank of America’s results on Jan. 14 and the Fed’s Jan. 27-28 policy meeting.
