Where do you draw the line on sharing "private" competitor intel with clients?

Currently a 2nd-year at an MM shop. Looking for some perspective on something I’ve noticed since moving from recruiting into the actual seat.

During recruiting coffee chats and info sessions, every senior banker stressed that protecting client confidentiality and personal integrity were sacred. Fast forward to being on live pitches, relationship calls, and client update decks, and the reality looks… different.

I get that half of an MD’s job is being a source of market color and intelligence. But I’m constantly seeing seniors toss around granular info on private competitors to prospects or clients:

• Strategic moves: Whether a competitor is quietly prepping an IPO track, running a dual track, or tapped out of cash
• Granular financials: Tossing out relatively tight ranges on growth ("growing 12–15% YoY"), rough revenue run rates, and EBITDA margins...
• Unannounced private transactions and terms

These are mostly private tech/services companies. I know that NDAs vary, people talk, and backchannels exist, but some of this feels like it crosses the line from broad industry read to outright leaking proprietary data, especially when it's clear the banker only knows because they pitched or engaged with that specific peer a month ago.

So my questions are:

1. Where do you draw the line between high-value "market color" and burning an NDA or trust?
2. How do clients actually perceive this? Does sharing competitor intel make you look plugged-in and indispensable, or does a smart CFO/CEO immediately think "if they’re telling me this, what are they telling others about us?"
3. Is this just standard middle-market gamesmanship that everyone accepts (vs. in the large-cap league it's more restricted around MNPI), or are people playing with fire more than they realize?

Curious how you guys navigate this or if this is just standard course of business