Schwab has ample liquidity for cash sorting headwind, says JPMorgan

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.