The Toronto-headquartered lender, which has been rapidly expanding its footprint via acquisitions, has hired advisers to draw up a possible transaction for the US firm.
According to the sources, the bank has not finalised any decision regarding the deal and could choose against moving forward with the plan.
Cowen, which made its stock market debut in 2006, served as a bookrunner on 55 initial public offerings in the past 12 months, the report said.
Last year, the New York-based firm agreed to buy M&A advisory firm Portico Capital Advisors to boost its capabilities in capital markets, advisory, and research.
If realised, the deal would help TD’s investment banking unit, TD Securities, to further expand its reach into equity and debt offering as well as research.
This February, the bank brokered a deal to snap up Tennessee-based First Horizon Corp for approximately $13.4bn.
The deal was said to be the largest acquisition in the bank’s history and boldest move under chief executive Bharat Masrani who took its reins in 2014.
Masrani previously said on several occasions that the bank would consider leveraging its extra capital in a significant US deal if the right opportunity came along.
Last year, TD Bank set up a robo-advisory service in the US in a bid to bolster its investment advice offerings in the country.