Bank of America's Wendy Stewart Talks Commercial Banking Outlook | Bloomberg Talks

Middle-market companies face a 2025 landscape defined by policy uncertainty regarding tariffs, taxes, and geopolitical tensions. Wendy Stewart, President of Global Commercial Banking at Bank of America, observes that while large-scale capital expenditure remains cautious, firms are pursuing targeted investments and strategic "China plus one" supply chain shifts toward Mexico and other Asian regions. A notable trend involves foreign companies seeking U.S. partnerships to mitigate potential trade barriers, exemplified by a European firm acquiring a stake in a Southeastern U.S. company to gain domestic exposure. Despite high yields, borrowing costs are not currently prohibitive for expansion as firms leverage global currency management. This complex environment, characterized by a mix of pent-up demand and a need for sophisticated cash management to handle FX risks, is driving record client acquisition for large-scale financial institutions capable of navigating international volatility.