How is CB generally performing in this environment?
So we are all aware that markets (ECM) and IB deal flow and revenues are down. Was wondering if anyone has any insights on how corporate / commercial banking deal flow looks like right now?
Is it also facing similar declines in deal activity like IB, ECM, etc?
Bump
Sector dependent, but for my coverage so far syndicated loan dealflow remains strong. DCM has fallen off a cliff but secured floating rate financing is an attractive option considering the cost of issuing unsecured right now.
Bank loan market is on fire. Banks have huge demand for loans and especially for “funded assets.” Institutional loans aka leveraged loans aka TLBs are shut down like high yield. Corporate banking should be doing well.
Thanks for your reply! Can you elaborate on why the bank loan market is on fire? Doesn't higher interest rates generally reduce demand for commercial loans (and hence deal activity) since cost of borrowing increases?
It probably moreso has to do with the cost of equity increases being higher relative to debt increases. Wondering if someone else could chime in.
I’ll add that companies are looking to issue bank debt rather than TLB/HY since the cost is lower (even if more restrictive terms). Plus banks in general have a lot of capital to work with right now.
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