BofA Finance LLC has announced a new offering of index-linked notes through a preliminary pricing supplement filed on November 5, 2026. This initiative is significant as it reflects the company's ongoing strategy to diversify its financial products in the competitive landscape of national commercial banks.

The notes will be linked to the Russell 2000 Index, a benchmark for small-cap U.S. stocks, and are fully and unconditionally guaranteed by Bank of America Corporation. This move is expected to attract investors looking for exposure to the performance of smaller companies in the U.S. market.

Background

BofA Finance LLC, a subsidiary of Bank of America Corporation, operates under the SIC code 6021, which classifies it as a national commercial bank. The company is incorporated in Delaware and has its business address in Charlotte, North Carolina. Recent filings indicate a series of similar offerings, all dated November 5, 2026, suggesting a strategic push to enhance its market presence.

What the Filing Says

The filing, accession number 0001918704-26-034743, details that the notes will not bear interest. Instead, the amount paid at maturity will depend on the performance of the Russell 2000 Index. If the index's final level is at least 90% of its initial level, investors will receive a threshold settlement amount expected to range between $1,102.10 and $1,119.70 per $1,000 face amount of the notes.

However, if the index declines beyond a certain threshold, investors may face losses on their principal investment. The notes are not listed on any securities exchange, which adds a layer of risk for potential investors.

Impact

This offering may appeal to a variety of investors, including those seeking to diversify their portfolios with products linked to market indices. The guarantee from Bank of America Corporation adds a level of security for investors, but the lack of interest-bearing features may deter more conservative investors.

What's Next

The filing does not specify what happens next, but it indicates that BofA Finance may sell additional notes in the future, potentially at different pricing and terms.