Investor Relations

Bank of America maintains excess liquidity available to the parent company and selected subsidiaries in the form of cash and high-quality, liquid, unencumbered securities that together serve as our primary means of liquidity risk mitigation. We call these assets our “Global Excess Liquidity Sources,” and we limit the composition of high-quality, liquid, unencumbered securities to U.S. government securities, U.S. agency securities, U.S. agency mortgage-backed securities and a select group of non-U.S. government securities. We believe we can quickly obtain cash for these securities, even in stressed market conditions, through repurchase agreements or outright sales. We hold these assets in entities that allow us to meet the liquidity requirements of our global businesses and we consider the impact of potential regulatory, tax, legal and other restrictions that could limit the transferability of funds among entities. Our Global Excess Liquidity Sources totaled $406 billion at March 31, 2012 and were maintained as presented in the graph below.

One metric Bank of America Corporation uses to evaluate the appropriate level of excess liquidity at the parent company is “Time to Required Funding.” This debt coverage measure indicates the number of months that the parent company can continue to meet its unsecured contractual obligations as they come due using only its Global Excess Liquidity Sources, without issuing any new debt or accessing any additional liquidity sources. The established target for Time to Required Funding has been set at 21 months. As of March 31, 2012, Time to Required Funding stood at 31 months. The period-end Time to Required Funding by quarter is depicted in the chart below.

An organizational chart depicting select major operating subsidiaries of Bank of America Corporation can be found by clicking here.