Article

2022-09-19 Economy

Cruel winter ahead for Wall Street as pandemic debts come due

[NYP] A banker recently told me that CEOs "would have to do something pretty special to fall into bankruptcy" the last couple of years as government pumped massive liquidity into the market, on top of the pandemic handouts.

That’s now changing, possibly quickly, with the Fed raising interest rates and reducing the size of its balance sheet.

A cruel winter is likely for Wall Street as markets remain choppy and their biggest clients scale back. Traditional deal-making such as IPOs has dropped significantly. At every major investment house, management is quietly planning layoffs (and some, like Goldman Sachs, not so quietly).

One area of potential growth: Wall Street restructuring departments. They’re eyeing expansion to provide advice to companies so burdened by high debt load they need to sell stuff or "restructure" in Chapter 11 bankruptcy.

Recession looms

Posted by Besoeker 2022-09-19 00:31|| || Front Page|| [11130 views ] Top

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