Charles Schwab Corp. is looking to raise fresh debt in the U.S. investment-grade bond market after revealing plans Monday to cut jobs and close or downsize offices to curb costs.
The financial services firm brought a benchmark-sized deal of senior unsecured notes Tuesday, according to a person familiar with the matter, who asked not to be identified as the details are private. Initial pricing discussions for the longest-dated portion of the sale, an 11-year fixed-to-floating-rate note, may yield in the area of 2.05 percentage points over Treasuries, the person said.
Westlake, Texas-based Schwab, which operates both brokerage and bank businesses, intends to use the sale proceeds for general corporate purposes. The firm last tapped capital markets in May, selling a $2.5 billion blue-chip bond. That marked the firm’s first debt issuance since a series of regional bank failures rattled the broader banking industry, beginning in March.
Schwab’s current raise comes after the firm said in a regulatory filing Monday that it plans to shutter or downsize some real estate and lower employee head counts to save at least $500 million in costs annually, amid investor pressure.
Earlier this month, the firm reported temporarily lower net flows of client money as it sees attrition of some retail and advisory clients’ assets while integrating TD Ameritrade into its business.
In recent weeks, a string of large US banks including PNC Financial Services Group Inc., Bank of America Corp., Goldman Sachs Group Inc. and Huntington Bancshares Inc. have also issued debt in the U.S. investment-grade bond market.
Charles Schwab did not respond to a request for comment.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
