Bank of America to Redeem €1.75B Floating Rate Notes; Berkshire Cuts Stake 9%
Bank of America will redeem €1.75 billion of floating rate senior notes on March 10, 2026, ceasing interest accrual on its March 2027 debt. Berkshire Hathaway’s new leadership cut its Bank of America stake by 9% in Q4 2025 and omitted the shares from its ‘core four’ holdings.
1. Redemption of Floating Rate Senior Notes
Bank of America will redeem all €1.75 billion outstanding of its Floating Rate Senior Notes due March 10, 2027 on March 10, 2026. The redemption price equals €1,000 per €1,000 calculation amount plus accrued and unpaid interest to the redemption date, after which interest will cease to accrue.
2. Berkshire Hathaway's Stake Reduction
During the fourth quarter of 2025, Berkshire Hathaway trimmed its Bank of America holding by 9%, reducing one of its largest financial positions. In the new CEO’s inaugural letter, Apple, American Express, Coca-Cola and Moody’s were named as ‘core four’ holdings, while Bank of America was notably excluded.
3. Implications for Capital and Investor Sentiment
The note redemption will lower Bank of America’s outstanding debt and eliminate interest obligations on the redeemed notes, potentially enhancing funding flexibility. Berkshire’s stake reduction and omission from core holdings may dampen investor confidence and prompt analysts to reassess the bank’s strategic outlook.