Online Fixed Income Trading Up 34 Percent Year-Over-Year As of Third
Quarter 2006
SAN FRANCISCO, Dec. 20 /PRNewswire-FirstCall/ -- Charles Schwab & Co.,
Inc. is making it easier to invest in fixed income vehicles -. a key
component to a well-balanced portfolio, especially for people in or near
retirement. The company has enhanced its BondSource(TM) platform, allowing
investors to more easily view its wide range of fixed income choices and
access enhanced research and screening tools. And now investors can
research and trade 22 hours a day, every day of the week.
"Investors' needs are changing," said Jim White, senior vice president
of Fixed Income Trading. "We have seen online fixed income trading double
over the past two years, as investors are increasingly looking for ways to
reduce portfolio risk while earning an income stream in retirement."
With a daily average inventory of roughly 25,000 fixed income
investment products from more than 300 suppliers -- comprising one of the
largest inventories at any brokerage firm -- investors have a multitude of
choices to suit their needs. Because of fluctuating interest rates, it is
important for investors to consider both their long and short term
investing strategies. The BondSource platform gives them the ability to
customize their fixed income portfolio by choosing among a wide set of
criteria including investment type, grade, maturity and representative
yield.
"Although the market has recently favored cash and other short-term
investments because of high short-term rates, both fixed income and growth
investors can benefit by investing in longer-term investments now to add
more stability to their portfolios," said White. "It's the story in which
both the tortoise and the hare win."
Schwab added new functionality that allows investors to see all types
of fixed income products on a single page. An expanded matrix lets them
compare yields by maturity for all fixed income products, including a
variety of CDs, U.S. Treasuries and zero income bonds, government agencies,
mortgage-back securities, hybrid preferred securities, and investment-grade
corporate and municipal bonds (including credit ratings). The BondSource
matrix shows 11 maturities ranging from one month to 30 years. A sample of
the matrix is available at http://www.schwab.com/bondsource_preview .
The unique inventory sorting logic ranks the available investment
selection by the highest yield to maturity whether it is from Schwab's own
inventory or not. Unlike some rate pages, the yields seen in the matrix are
live and executable with a mouse click. The system sorts through thousands
of line item per product and displays the highest yield at the time on the
rates page. By clicking on the rate, investors are taken to the offering
page where they can find details about the bond and execute the trade.
Resources Available to Fixed Income Investors
Schwab offers a suite of fixed income services including:
-- Multiple regional fixed income trading centers
-- Bond specialists with an average of 15 years of industry experience who
can assist clients, create investment ladders and provide trade history
-- New Issue Bond Alert Service
-- Extensive online articles from proprietary and third party sources
-- Educational Web casts
-- Online economic events calendar
-- Briefing.com Bond Market Analysis
-- Toll-free number for assistance
Brokerage Products: Not FDIC Insured * No Bank Guarantee * May Lose Value
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.7 million client
brokerage accounts, 541,000 corporate retirement plan participants, 146,000
banking accounts, and $1.2 trillion in client assets. Through its operating
subsidiaries, the company provides a full range of securities brokerage,
banking, money management and financial advisory services to individual
investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org ),
and affiliates offer a complete range of investment services and products
including an extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan services;
referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based investment
advisors through its Schwab Institutional division. The Charles Schwab
Bank, N.A. (member FDIC) provides banking and mortgage services and
products. CyberTrader(R), Inc. (member SIPC, http://www.sipc.org ) is an
electronic trading technology and brokerage firm providing services to
highly active, online traders. More information is available at
http://www.schwab.com . (1206- 6088)
SOURCE Charles Schwab
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Related links:
http://www.schwab.com
CONTACT:
Lara Edge of Charles Schwab, +1-415-636-3386,
or Lara.Edge@schwab.com
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