Possible scenario
Deleveraging Risk Emerges
20% Chance
A pullback in equity markets or concentrated high-growth holdings causes clients to reduce borrowings and sell collateral. Schwab is not likely to face a balance-sheet crisis, but investors could reassess the earnings quality of a business tied to market levels and client leverage.
Secondary impacts
- Finance -0.8%
Tickers
- SCHW-4.7%
- HOOD-2.3%
- IBKR-2.3%
- MS-0.8%
Portfolio impact
S&P 500-0.1%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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