Charles Schwab
cash sorting woes could persist for longer than prior cycles, according to a Citi analyst, who lowered his earnings per share estimates to reflect potential for lower sweep account deposits and higher short-term financing costs.
Shares of Charles Schwab (ticker: SCHW) have tumbled about 35% so far this year as investors reassess the impact of rising interest rates and scrutinize the company’s balance sheet. Schwab has large unrealized losses on mortgage-backed securities, which it relabeled last year as “held-to-maturity” on its balance sheet, meaning the company does not intend to sell them prior to maturity.
Source: https://www.barrons.com/articles/charles-schwab-estimates-citi-analyst-8d6dd959?siteid=yhoof2&yptr=yahoo