Charles Schwab Announces $2.5 Billion Bond Sale to Raise Funds

Charles Schwab (SCHW) said Wednesday it will raise $2.5 billion via bond sales to fund general corporate expenses, including “investments in our subsidiaries and supporting business growth,” as the brokerage giant deals with the fallout from the recent turmoil in the banking industry.

Schwab said it will sell $1.2 billion in bonds due in 2029, along with $1.3 billion in notes expiring in 2034. The two securities will have yields to maturity (YTM) of 5.64% and 5.85%, respectively, yielding just over a 2% premium to the 10-year U.S. Treasury note, which is currently trading at 3.6%

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