Wall Street Banks' Risky M&A Debt Problem

The video discusses the financial challenges faced by banks and private equity firms due to deals underwritten during the easy money era of late 2021 and early 2022. These deals couldn't be sold in 2022, leaving significant amounts on balance sheets, affecting deal activity and reducing investment banking fees. The Federal Reserve's desire for tightened financial conditions further complicates the situation. The video highlights the difficulties in selling debt and the ongoing challenges expected throughout 2023.

How has the easy money era affected investment banking fees?

What challenges are banks facing in the current financial environment?

What impact does the Federal Reserve's tightening of financial conditions have on private equity firms?

What are some of the assets that banks are struggling to sell?

What does the future look like for investment banking and private equity in 2023?