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.
Looking to refine your strategy for investing in stocks in the US market? Discover expert insights, key trends, and risk management techniques to maximize your returns
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
