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,” said Walt Bettinger, Schwab’s president and CEO. “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.”