Charles Schwab has extended its agreement with J.P. Morgan to provide
Schwab clients with access to a broad range of J.P. Morgan’s fixed
income securities.
Peter Crawford, senior vice president, Charles Schwab (Photo: Business Wire)
The agreement, originally signed in 2010, gives Schwab’s 9.1 million
client brokerage accounts1 access to J.P. Morgan’s new issue
and secondary municipal bonds and corporate debt securities. Schwab
clients have had access to more than 800 new corporate issues through
J.P. Morgan since 2011. In 2013, total orders for these corporate new
issues saw an increase of 70 percent over 2012, and the total face value
of those orders well more than doubled in that time.
“Retail demand for access to this traditionally institutional product
has exceeded our expectations,” said Peter Crawford, senior vice
president at Charles Schwab. “The response has been significant, and I’m
thrilled that we’re continuing this successful program with J.P. Morgan.”
Crawford continued, “We believe this agreement has been an important
step on the road to changing a market that previously was the
near-exclusive domain of institutional investors.” As access to bond
issues has become possible for more investors, he noted, demand and
participation by both retail clients and Registered Investment Advisors
(RIAs) has grown dramatically, particularly in the area of new corporate
bond issuance.
Additionally, since the agreement was put in place, Schwab clients have
participated in nearly 1,200 negotiated and competitive municipal deals,
placed more than 12,300 orders and invested more than $1.9 billion in
new issue municipal securities offered by J.P. Morgan.
“Our fixed income issuer clients have benefitted from exposure to one of
the largest retail brokerage platforms in the country,” said Paul
Palmeri, head of Public Finance at J.P. Morgan. “We are pleased to be
able to continue bringing Schwab clients access to our fixed income
primary and secondary offerings.”
Charles Schwab is a longtime advocate for increasing access to the bond
market for retail investors. Schwab BondSource offers access to more
than 36,000 new issue and secondary bond offerings from more than 200
dealers2, including J.P. Morgan, and connects investors to
multiple major bond trading platforms, not just one.
In 2013, J.P. Morgan underwrote approximately $438.8 billion in the
global debt markets, according to Dealogic, and approximately $53
billion in the U.S. municipal markets, according to ThomsonReuters.
About Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com.
Follow us on Twitter,
Facebook,
YouTube,
LinkedIn
and our Schwab
Talk blog.
Disclosures
Through its operating subsidiaries, The Charles Schwab Corporation
(NYSE: SCHW) provides a full range of securities brokerage, banking,
money management and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC,
www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab
Bank (member FDIC and an Equal Housing Lender), provides banking and
lending services and products. More information is available at www.schwab.com
and www.aboutschwab.com.
Fixed income securities are subject to increased loss of principal
during periods of rising interest rates. Fixed-income investments are
subject to various other risks including changes in credit quality,
market valuations, liquidity, prepayments, early redemption, corporate
events, tax ramifications and other factors.
J.P. Morgan is the marketing name for JPMorgan Chase & Co. and its
subsidiaries and affiliates worldwide.
J.P. Morgan Securities LLC is a member of NYSE and SIPC.
(0314-1650)
1 As of February 12, 2014
2 As of February
28, 2014
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140307005112/en/
Copyright Business Wire 2014