Charles Schwab raises $2.5 bln in bond offering amid surge in corporate bond deals

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Charles Schwab Corp.

on Thursday disclosed plans for a $2.5 billion bond offering as the corporate bond market continues to pick up steam.

The brokerage firm is offering $1.2 billion of 5.643% fixed-to-floating rate senior notes due 2029, as well as $1.3 billion of 5.853% fixed-to-floating rate senior notes due 2034.

A person familiar with the bond market told MarketWatch the offering appears to be in good shape for a debut.

Bank of America Corp.
Credit Suisse
Goldman Sachs
JPMorgan Chase

and Wells Fargo

are joint bookrunning managers on the Schwab debt deal.

Schwab plans to use the proceeds for general corporate purposes, including investments in subsidiaries and supporting business growth.

Chares Schwab stock is down 1% in premarket trades

The offering comes a day after Pfizer

disclosed plans to raise $30 billion in debt, in a sign of liquidity and revived deal-making on Wall Street.

Optimism around a debt ceiling deal and an announcement from Western Alliance Bancorp

continued to fuel gains in bank stocks early Thursday, after big gains in the previous session.

Investors have been pouring money into corporate bonds as a way to generate more yields than other asset classes, with that pattern expected to continue in the second half of this year, according to market observers.


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