NEW YORK, Feb 19, 2026, 18:53 ET — After-hours
Bank of America slipped 1.1% to close at $52.77 on Thursday, then barely budged after hours following a Reuters report that the bank is putting $25 billion into private credit deals. Shares moved in a range from $51.52 to $53.30, with trading volume hitting roughly 47.1 million.
This private-credit push is significant: a major U.S. bank stepping further into a space where alternative asset managers have traditionally held sway. Private credit—lending that sidesteps public bond markets and is usually handled by non-bank players—has picked up steam as borrowers chase quicker access to cash and less red tape.
Bank of America sees an opening to keep client relationships intact, especially as mid-sized firms and private equity shops look elsewhere. Investors, on the other hand, face a recurring dilemma: is that higher yield really worth it, or are hidden risks waiting to surface if the economy loses steam.
The group took a hit on Thursday. U.S. stocks ended in the red, with the S&P 500 financial index shedding 0.9% as concerns over credit quality and the potential impact of rapid AI advances weighed on traders’ minds. “The market is trying to grapple with what business lines are under threat in a material way from AI,” said Keith Buchanan, senior portfolio manager at GLOBALT Investments. Reuters
Oil found fresh momentum, with crude closing up about 2% at its highest level in six months. Tensions flared once more between the United States and Iran, keeping traders wary—anxiety that often stirs inflation fears and can prompt higher rates. “The market will continue to rally in anticipation of something happening,” said Andrew Lipow, president of Lipow Oil Associates. Reuters
Traders kept shifting their bets on rates as the Federal Reserve’s most recent minutes revealed policymakers divided over next steps—“several” officials even warned rates might have to go higher. The Fed’s notes also highlighted a sharper focus on the potential impact of AI on productivity and employment. Reuters
Bank of America is pushing further into the retail space. The bank plans to roll out “BofA Rewards” on May 27—a no-fee loyalty program tied to any personal checking account. More than 30 million clients will suddenly become eligible, according to the bank. “BofA Rewards ensures every client … can experience meaningful benefits and feel valued,” said Mary Hines Droesch, who oversees consumer and small business products and analytics. Bank of America
Vice Chair Thong M. Nguyen picked up Bank of America shares through vested stock units, then offloaded a portion to the issuer for tax purposes, according to a regulatory filing. Several of those transactions landed at $52.55 per share.
Still, expanding into private credit doesn’t come without strings. Banks are up against stricter capital rules and heavier oversight than most rival funds. A spike in defaults would put the market’s risk pricing to the test. Persistent oil-fueled inflation could keep rates elevated, driving up funding costs just as credit stress intensifies.
Here’s what’s on deck: Friday brings the Personal Consumption Expenditures price index, the inflation metric the Fed tracks most closely. Also, investors are zeroed in on when Bank of America will move on that $25 billion pool — looking for details on terms, counterparties, and any initial deal activity.
