Charles Schwab and JP Morgan have entered into an agreement to offer Schwab clients access to JP Morgan’s fixed income securities, including new-issue and secondary municipal bonds, corporate debt securities and non-convertible preferred securities.
JP Morgan also agreed to provide Schwab clients with access to JP Morgan’s research covering fixed income markets and the economy.
Under the agreement, Schwab will be a preferred retail dealer for JP Morgan, further expanding the investment bank’s distribution channels. New issue and secondary fixed income securities from JP Morgan will be available to Schwab’s 7.8 million client brokerage accounts.
For Schwab, the arrangement is part of its ongoing effort to provide fixed income solutions to investors and independent investment advisors who serve them, whether they seek to achieve portfolio stability or generate income. The availability of JP Morgan’s research and fixed income products may help clients meet their investment goals.
Walt Bettinger, president and CEO of Schwab, said: “Investors today are focused on managing their risk with an eye on the tax implications of their investment strategies. As a result, more and more Schwab clients are investing in fixed income, with a particular emphasis on municipal bonds, making this an ideal time to expand our clients’ access to an inventory of municipal and corporate bonds through an industry leader like JP Morgan.”
Jes Staley, CEO of investment bank at JP Morgan, said: “Joining with Schwab will enable us to offer our fixed income issuer clients access to one of the largest brokerage platforms in the country. We are pleased to offer Schwab’s clients access to our fixed income securities and research to help them achieve their investment goals.”