Charles Schwab clients will now have access to J.P. Morgan's fixed-income securities, including new-issue and secondary municipal bonds, corporate debt securities and non-convertible preferred securities, via an alliance announced this week between the two firms.
The agreement makes new issue and secondary fixed-income securities from J.P. Morgan available to Schwab's 7.8 million client brokerage accounts and makes Schwab a preferred retail dealer for J.P. Morgan. Also as part of the agreement J.P. Morgan will provide Schwab clients with access to research on fixed-income markets and the economy.
"We're very pleased to be working with J.P. Morgan, a leading fixed-income underwriter, to provide Schwab clients with significantly expanded access to initial bond offerings and award-winning research," Walt Bettinger, Schwab's president and CEO, said in a press release. "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 J.P. Morgan."
