Speaking of liquidity - >>Bank of America Waives Some Trades Fees
CHARLOTTE, N.C. (Reuters) - Bank of America Corp. (NYSE:BAC - news), the third-biggest U.S. bank holding company, said on Friday it would waive assignment fees it charges on trades done through its par and near par loan trading desks, to boost the flow of capital through this market.
The Charlotte, N.C.-based bank, which has about $642 billion in assets, said it will waive these fees for banks and institutional investors, but not for banks with busy trading desks. It will also not remove the language about these fees from loan documents, the bank said.
Par and near par loans are those worth 90 cents on the dollar or more. Assignment fees typically run between $2,000 and $3,500 and are charged by administrative agents like Bank of America whenever a loan is bought or sold.
``The decision to waive fees is an effort to promote liquidity in the loan trading market,'' Ed Hamilton, head of the bank's par and near par loan trading desks, said.
There is an adequate pool of money in the market, but Hamilton said the bank was taking this step to bring even more money to a private market that lacked a large pool of institutional investors.<<
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