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.
The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.
IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.
Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.
A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.
As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.
Wellington explores how multi strategy hedge funds may enhance diversification
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
