Bank of America Forecasts 75bps of 2026 Rate Hikes, Underwrites Sony Dollar Bonds
BAC•Bank of America now projects three 25 basis-point Fed rate increases in September, October and December 2026, totaling 75 basis points as core PCE inflation remains above 3.5%. The bank also co-leads Sony’s return to the US dollar bond market with two tranches priced around +70 bps for five-year notes and +90 bps for ten-year notes to fund general corporate purposes.
1. Fed Rate Forecast Revision
Bank of America economist Aditya Bhave flipped the bank’s outlook after the first meeting chaired by Kevin Warsh, forecasting three 25 basis-point increases in September, October and December 2026. The shift reflects sticky core PCE inflation near a 3.5% annual rate, resilient job data and a hawkish tone from FOMC members emphasizing price stability.
2. Sony Dollar Bond Offering
Bank of America and Morgan Stanley are co-leading Sony’s first US dollar bond issuance since 1998, marketing two senior fixed-rate tranches with spreads of approximately 70 basis points over Treasuries for five-year notes and 90 basis points for ten-year notes. Proceeds will support general corporate purposes, leveraging tight credit spreads as market participants anticipate future rate moves.
