BofA Nears Completion of SRT Deal Tied to $1 Billion of Loans

Bank of America Corp. is close to issuing a significant risk transfer linked to a $1 billion portfolio of corporate loans, according to people familiar with the matter.

The SRT, which is equivalent to about $90 million, was priced at a spread of less than 400 basis points over a benchmark borrowing rate, said the people, who declined to be identified because the information is private. The transaction is still pending completion, so terms could still be adjusted, they added.

A representative for Bank of America declined to comment.

SRTs, also known as synthetic risk transfers, allow banks to insure ...