Charles Schwab Cash Sorting Woes May Linger Into 2024: BofA Analysts

Clients moving cash out of sweep accounts and into higher yielding offerings, a practice known as cash sorting, has been a major headache this year for Charles Schwab. It’s a big reason the stock is down about 35% in 2023. Now it looks like the company’s woes may linger well into 2024.

That’s according to equity analysts at Bank of America, who issued a note of caution Tuesday. Charles Schwab (ticker: SCHW) sweeps uninvested client cash into bank accounts that pay as little as 0.45%. But as interest rates have soared over…