Charles Schwab Corp. stated Thursday it recorded $53 billion in core internet new shopper property, the second-highest March lead to its historical past.
The monetary companies and brokerage agency stated deposit flows “have remained fairly consistent” through the latest weeks of jitters within the banking sector.
While cash has flowed into higher-interest-paying cash market funds, CDs and bonds from comparatively lower-return accounts, that pattern will begin to stage off as a result of shoppers nonetheless need to hold money in a extra “highly liquid” kind, Schwab stated.
“History suggests the movement of cash into investments such as money markets, bonds and CDs reaches a peak and then returns back towards historical norms,” Schwab stated.
At Charles Schwab, so-called transactional money that prospects hold on the prepared usually includes about 5% to 10% of shopper property.
Charles Schwab
SCHW,
inventory is down 40.7% in 2023, in comparison with a 6.9% improve by the S&P 500
SPX,
Also Read: Banks on the road for deposit flows and margin stress in Q1 updates as they reel from banking disaster
Source web site: www.marketwatch.com
