Bank of America: Convertible Series L Delivering High Income With Equity Participation

Impact · against what's priced in

The article provides an analysis of Bank of America's Series L convertible preferred shares, which is not material to the valuation of the common stock. The yield and premium characteristics of a hybrid security do not change the fundamental revenue growth or margin assumptions currently embedded in the common share price.

BAC+0.00

Doesn't touch the price's assumptions

In context

The article discusses the yield and conversion premium of Series L preferred shares; this has no bearing on the common stock's required revenue CAGR of 25.9% or its current free-cash-flow margins.