New York, February 20, 2026, 14:12 EST — Regular session
- Bank of America shares ticked up roughly 0.4% in afternoon trading.
- Reuters is reporting the bank has $25 billion ready for private-credit deals.
- Liquidity pressures in private credit are drawing investor attention, with eyes also on upcoming Fed signals and earnings milestones.
Bank of America (NYSE: BAC) edged up 0.4% to $52.96 by early afternoon Friday. The stock finished Thursday at $52.77 and has been moving in a range from $51.83 to $53.00 today.
It’s a minor shift, though the argument swirling around it is anything but. Major banks keep ramping up their private credit bets, while questions mount over just how much risk piles up as lending migrates to these less liquid corners.
Private credit, essentially loans made away from public markets, tends to stick on lenders’ books instead of changing hands—and getting out can be tough if the mood sours. The sector’s expanded as borrowers chase speedier funding and banks seek out fresh sources of fees.
Bank of America is putting $25 billion toward private-credit transactions, according to a memo reviewed by Reuters on Thursday. JPMorgan allocated $50 billion for private credit last year, using its own balance sheet. Goldman Sachs, meanwhile, has set up a separate division targeting the sector. 1
Stocks leaned higher across the board. The SPDR S&P 500 ETF added roughly 0.7%. Financials picked up 0.4%, and the SPDR bank ETF pushed up by about 0.9%. JPMorgan gained 0.8%, while Wells Fargo tacked on close to 1%.
Investors generally buy into the approach: stay close to clients, keep the deals coming, and put capital to work where there’s less competition. The tough test is whether those returns hold up when credit conditions get rocky.
Liquidity worries kept the pressure on. Blue Owl shares fell another 4% Friday after the firm offloaded $1.4 billion in loans and cut quarterly redemption rights from one of its funds for good. According to Truist Securities analyst Brian Finneran, investors saw the move as evidence withdrawals were picking up. Oppenheimer’s Mitchel Penn put it bluntly: “Nobody is getting a break.” 2
Bank of America hasn’t specified the pace for rolling out the $25 billion, nor given details on the split between what it’ll hold and what it syndicates. Investors are zeroing in on those questions: the economics, oversight, and what ends up stuck on the balance sheet if the music stops.
Private credit tends to look most secure just ahead of a downturn. When defaults rise or recovery rates slip, returns can reverse course. Banks notice: write-downs hit, loan-loss reserves grow—even if deal flow doesn’t falter.
Bank stocks are still being pushed around by rates, with the next big marker coming up at the Fed’s March 17-18 meeting. Any change in rate-cut bets would ripple through the sector, not just hit BAC. 3
Bank of America is on deck to release first-quarter earnings April 15. Investors will be watching for a clearer view of credit quality—and whether the private-credit ramp is pushing up risk or simply padding fee income. 4
