US regional banks could look to tap the investment-grade market after Charles Schwab Corp. raised $2.5 billion in bonds last week, according to analysts at JPMorgan Chase & Co. and Bloomberg Intelligence.
Schwab’s debt offering may be followed by potential candidates U.S. Bancorp, PNC Financial Services and Truist Financial Corp., which may need to boost their debt footprints over the next three years by about $25 billion because of potentially higher requirements for total loss-absorbing capacity, BI analysts including Arnold Kakuda wrote in a note last week.