Bank of America Shares Slip on $1.4B Private Credit Sell-Off and Tariff Uncertainty
Bank of America shares dipped after Blue Owl Capital sold $1.4 billion of private credit loans at book value, stoking fears of forced asset sales that could curb deal flow and underwriting fees. Tariff policy uncertainty following the Supreme Court’s trade ruling is dampening loan demand outlook.
1. Private Credit Sell-Off Pressures
Pressure on Bank of America shares intensified after Blue Owl Capital announced it would sell roughly $1.4 billion of private credit loans at book value to meet redemption demands and unwind a planned merger. This raised concerns that similar funds might face forced liquidity, potentially slowing deal flow and reducing underwriting and advisory fees through Bank of America’s leveraged finance franchise and Merrill wealth arm.
2. Tariff Uncertainty Clouds Growth Outlook
The Supreme Court’s decision to strike down key trade tariffs and ongoing debate over replacements has injected uncertainty into corporate investment plans, dampening expectations for loan demand and earnings multiples at large lenders. Economic sensitivity in Bank of America’s lending portfolio could compress net interest income and fee revenue if companies delay or scale back expansion.
3. Technical Weakness and Key Levels
Technical indicators show Bank of America stock trading about 5.1% below its 20-day moving average and 4.4% below its 100-day average, with an RSI of 36.8 and a negative MACD reading indicating bearish momentum. Traders are watching resistance at $57.00 and support near $50.50 as the stock sits closer to its 52-week low than high.