Regional Banks Could Tap Debt Market After Charles Schwab Raised $2.5 Billion in Bonds

  • The sales could come as lenders face stronger regulatory rules
  • U.S. Bancorp, PNC, Truist candidates to follow Charles Schwab
A Charles Schwab location in New York, U.S., on Monday, Jan. 17, 2022. Photographer: Victor J. Blue/BloombergPhotographer: Victor J. Blue/Bloomberg
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US regional banks could look to tap the investment-grade market after Charles Schwab Corp. raised $2.5 billion in bondsBloomberg Terminal last week, according to analysts at JPMorgan Chase & Co. and Bloomberg Intelligence.

Schwab’s debt offering may be followed by potential candidates U.S. Bancorp, PNC Financial Services and Truist Financial Corp., which may need to boost their debt footprints over the next three years by about $25 billion because of potentially higher requirements for total loss-absorbing capacity, BI analysts including Arnold Kakuda wrote in a noteBloomberg Terminal last week.