BAML shrugs off higher funding costs

Bank of America Merrill Lynch’s (BAML) wholesale funding costs spiked in the second quarter in response to rising interest rates, though its net interest spread stayed largely untouched.  

The interest expense of long-term debt issued by the bank jumped 38 basis points quarter to quarter, to 3.44% from 3.06%, and the interest expense on borrowed Federal funds leapt 49bp, to 2.15% from 1.66%. 

But BAML’s net interest spread – the difference between what it makes on assets and what it pays to

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