With all of the craziness lately, I was wondering how main segments have been effected (mortgage, M&A, corporate lending). Will there be higher rates in mortgage loans, for example. I’m also interested in what might happen to corporate lending and M&A as a result of rate hikes and bank insolvencies.

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VisualMod t1_jebqqyq wrote on March 30, 2023 at 9:17 PM

#2,501,266

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VisualMod t1_jebqrpi wrote on March 30, 2023 at 9:17 PM

#2,501,278

>There is no one-size-fits-all answer to this question, as the effects of recent events on different segments of the financial market will vary depending on a number of factors. However, in general, higher rates may make it more difficult for borrowers to obtain loans, and insolvencies among banks could lead to tighter lending standards and less available credit. As a result, companies may find it more difficult to finance M&A activity or expand their businesses through borrowing.

[deleted] t1_jebrgx1 wrote on March 30, 2023 at 9:22 PM

#2,501,449

[removed]

Ialsoreadtheonion t1_jebtc7x wrote on March 30, 2023 at 9:34 PM

#2,501,900

My analysis. Ahem, half baked notion about of banks is buy big ones while they are cheap. Buy small ones if you want to gamble while they are very cheap. I have no idea how to value a bank or determine how exposed it is to the mayhem. I bought ones that legendary investors have bought and still hold as a proxy for having any actual skill in valuing banks.

0x11C3P t1_jebtut8 wrote on March 30, 2023 at 9:38 PM

#2,502,028

M&A is down roughly 40% YoY. It might pick up but definitely will be subdued all things considered. Between possible credit crunch and higher interest rates that'll eat away at everyone's margins, companies might need the capital or businesses might not look as attractive because of again, compressed margins.