Bank of America 2015 Annual Report Download - page 195

Bank of America 2015 193
NOTE 11 Long-term Debt
Long-term debt consists of borrowings having an original maturity of one year or more. The table below presents the balance of long-
term debt at December 31, 2015 and 2014, and the related contractual rates and maturity dates as of December 31, 2015.
December 31
(Dollars in millions) 2015 2014
Notes issued by Bank of America Corporation
Senior notes:
Fixed, with a weighted-average rate of 4.55%, ranging from 1.25% to 8.40%, due 2016 to 2045 $ 109,861 $ 113,037
Floating, with a weighted-average rate of 1.38%, ranging from 0.11% to 5.07%, due 2016 to 2044 13,900 14,590
Senior structured notes 17,548 22,168
Subordinated notes:
Fixed, with a weighted-average rate of 5.19%, ranging from 2.40% to 8.57%, due 2016 to 2045 27,216 23,246
Floating, with a weighted-average rate of 0.94%, ranging from 0.43% to 2.68%, due 2016 to 2026 5,029 5,455
Junior subordinated notes (related to trust preferred securities):
Fixed, with a weighted-average rate of 6.78%, ranging from 5.25% to 8.05%, due 2027 to 2067 5,295 6,722
Floating, with a weighted-average rate of 1.08%, ranging from 0.87% to 1.53%, due 2027 to 2056 553 553
Total notes issued by Bank of America Corporation 179,402 185,771
Notes issued by Bank of America, N.A.
Senior notes:
Fixed, with a weighted-average rate of 1.57%, ranging from 1.13% to 2.05%, due 2016 to 2018 7,483 2,740
Floating, with a weighted-average rate of 1.13%, ranging from 0.43% to 3.30%, due 2016 to 2041 4,942 3,028
Subordinated notes:
Fixed, with a weighted-average rate of 5.68%, ranging from 5.30% to 6.10%, due 2016 to 2036 4,815 4,921
Floating, with a weighted-average rate of 0.80%, ranging from 0.79% to 0.81%, due 2016 to 2019 1,401 1,401
Advances from Federal Home Loan Banks:
Fixed, with a weighted-average rate of 5.34%, ranging from 0.01% to 7.72%, due 2016 to 2034 172 183
Floating, with a weighted-average rate of 0.41%, ranging from 0.35% to 0.63%, due 2016 6,000 10,500
Securitizations and other BANA VIEs 9,756 9,882
Other 2,985 2,811
Total notes issued by Bank of America, N.A. 37,554 35,466
Other debt
Senior notes:
Fixed, with a rate of 5.50%, due 2017 to 2021 30 1
Floating —21
Structured liabilities 14,974 15,971
Junior subordinated notes (related to trust preferred securities):
Fixed —340
Floating —66
Nonbank VIEs 4,317 3,425
Other 487 2,078
Total other debt 19,808 21,902
Total long-term debt $ 236,764 $ 243,139
Bank of America Corporation and Bank of America, N.A.
maintain various U.S. and non-U.S. debt programs to offer both
senior and subordinated notes. The notes may be denominated
in U.S. Dollars or foreign currencies. At December 31, 2015 and
2014, the amount of foreign currency-denominated debt translated
into U.S. Dollars included in total long-term debt was $46.4 billion
and $51.9 billion. Foreign currency contracts may be used to
convert certain foreign currency-denominated debt into U.S.
Dollars.
At December 31, 2015, long-term debt of consolidated VIEs in
the table above included debt of credit card, home equity and all
other VIEs of $9.6 billion, $183 million and $4.3 billion,
respectively. Long-term debt of VIEs is collateralized by the assets
of the VIEs. For additional information, see Note 6 – Securitizations
and Other Variable Interest Entities.
The weighted-average effective interest rates for total long-term
debt (excluding senior structured notes), total fixed-rate debt and
total floating-rate debt were 3.80 percent, 4.61 percent and 0.96
percent, respectively, at December 31, 2015 and 3.81 percent,
4.83 percent and 0.80 percent, respectively, at December 31,
2014. The Corporation’s ALM activities maintain an overall interest
rate risk management strategy that incorporates the use of
interest rate contracts to manage fluctuations in earnings that are
caused by interest rate volatility. The Corporation’s goal is to
manage interest rate sensitivity so that movements in interest
rates do not significantly adversely affect earnings and capital.
The weighted-average rates are the contractual interest rates on
the debt and do not reflect the impacts of derivative transactions.
Certain senior structured notes and structured liabilities are
accounted for under the fair value option. For more information on
these notes, see Note 21 – Fair Value Option.
The table below shows the carrying value for aggregate annual
contractual maturities of long-term debt as of December 31, 2015.
Included in the table are certain structured notes issued by the
Corporation that contain provisions whereby the borrowings are
redeemable at the option of the holder (put options) at specified
dates prior to maturity. Other structured notes have coupon or
repayment terms linked to the performance of debt or equity
securities, indices, currencies or commodities, and the maturity
may be accelerated based on the value of a referenced index or