BankAmerica Corp. recently issued $300 million of five- year, senior notes priced with a 6.625% coupon to yield 6.69%, or 32 basis points above comparable Treasuries.
BankAmerica like other companies is issuing now because of the favorable rate climate.
"People are getting nervy about interest rates, because they more than likely will go up," one analyst said. "So if you are going to lock them in, you might as well in lock them in now, especially at 32 basis points."
Lead underwriters were Merrill Lynch & Co. and BA Securities Inc., a BankAmerica subsidiary.