“assuming the markets continue to be constructive, we will likely issue a bit more debt primarily to build up extra liquidity ahead of some debt maturities we have early next year.”

In context

“rformance was off last year’s record levels with a little under $5 billion of revenue and $0.77 of adjusted EPS. And yet, that bottom line performance was better than the second quarter of this year. And with an adjusted pretax margin of over 41%, 30% on a GAAP basis due to the large restructuring charge this quarter, we are navigating from a position of strength. Turning our attention to the balance sheet. Bank deposits were down 7% sequentially due to client cash allocation decisions. But following a brief uptick in that activity in August, the pace slowed dramatically in September. As a result of that slowing activity, we were able to further reduce the amount of supplemental funding we have outstanding. We issued a little over $2 billion in debt to supplement our parent liquidity. And assuming the markets continue to be constructive, we will likely issue a bit more debt primarily to build up extra liquidity ahead of some debt maturities we have early next year. And our capital position continues to get even stronger with our consolidated Tier 1 leverage ratio rising to 8.2%. And our adjusted Tier 1 leverage ratio, inclusive of AOCI and therefore, what our binding constraint would be if we lose the AOCI opt-out at Schwab Bank now into the mid-4% range, and that’s using average assets, it’s more like 4.6% today on a spot basis, as it steadily climbs towards 5% by the end of the year, meaning that we will be in a position to meet the newly proposed regulatory requirement organically and several years ahead of the anticipated full implementation date. I know there’s a lot of commentary. There has been a lot of commentary about the increased client cash allocation activity in August, activity which seemed to buck the clear trend of deceleration we’ve”