The state of corporate/commercial banking

Everyone still needs debt. It’s way cheaper than equity financing.

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Intern in IB - Gen

I know this forum has a focus on IB but was wondering if you guys have any insights on what the state of commercial and corporate banking looks like given the higher interest rate and recessionary environment. "
 

Net interest margin is going to increase with the increased rates. Banks like higher rate environments. Expect less deals to be done and credit to get tighter given the expected downturn. I think it's still a stable environment and am not worried too much expect for I'm expecting a change in focus which is a typical cycle that you'll live through a few times in your career. 

I work in commercial/corporate and we are doing way less loans but but the spread on these loans is big so they are way more profitable. I could be wrong but I think my role is about to switch more to managing risk than new deals. My MD has wanted to know which companies survived stagflation last time it was in America, major inflation in America, and who survived the 08 crises. Any company that did not survive one of those has to be evaluated for those scenarios.