S&C Senior Chair Rodge Cohen appeared on Bloomberg TV’s “Balance of Power” to discuss the Treasury market and the outlook for big banks in light of upcoming bank earnings reports amid recent market turmoil. He noted that inflation will have an effect on the price of fixed-rate securities and fixed-rate loans, and that deposits will become more valuable in a high-rate environment. Rodge said banks will do no better than their customers in a tumultuous economy, but overall, banks are sitting in a position of strength today.
Rodge also commented on the slowing M&A market and public offerings, which he said will have an impact on revenues generated from those businesses. He noted that he is not as worried about banks but is more concerned with the unregulated segments of the financial services industry.