JPMorgan says Charles Schwab this morning reported its monthly activity highlights for February that showed ongoing gains in its core business despite the near-term cash sorting headwind. Importantly, Schwab disclosed that it expects $100B of cash flow over the next 12 months from net new assets, cash on hand, and portfolio cash flows as well as incremental short term funding capacity of $8B per month in CDs and another $300B of incremental short-term capacity from the Federal Home Loan Bank and other short-term facilities, the analyst tells investors in a research note. The company expects cash sorting to continue near-term but it has ample liquidity to manage it, contends the firm. It keeps an Overweight rating on the shares.
Published first on TheFly
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