Bank of America Plans SRT on $3 Billion of Private Markets Loans

Bank of America Corp. is planning a significant risk transfer tied to a $3 billion portfolio of loans to private market funds, according to people familiar with the matter.

The portfolio underlying the potential transaction consists of so-called subscription lines, said the people, who asked not to be identified because the deal is private. Final terms are subject to discussions with investors.

A representative for Bank of America declined to comment.

Subscription lines are credit facilities typically extended to private equity and other private market funds to help them manage liquidity and bolster returns. The financing, which is secured by ...