The words "buy" and "Bank of America" haven't exactly rolled off investor tongues lately. That is understandable. Despite the bank's repeated claims to the contrary, and Wednesday's bounce in the stock, markets remain worried Bank of America may need additional equity. Given the bank's lowly valuation, that could mean seriously painful dilution.

This shouldn't be such a worry, though, for holders of some of the bank's debt, which in many cases has suffered alongside the stock. And that is where investing opportunity may lie, even thought credit-default swaps on the bank have leapt in price as markets have become nervous.