- The slowdown in bank commercial and industrial lending is "drastic by any recent point of comparison," says UBS's Stephen Caprio. Putting numbers on it, monthly annualized growth in C&I loans from Nov-March fell to 1.1% from the 9.5% average from 2012-2016.
- He calls the slowdown likely a demand story as borrowers mull political uncertainty, high leverage, and rising interest rates.
- There's a "material probability," he says, that investors aren't yet factoring in what could be a surprising soft patch in growth.
- Source: Felice Maranz for Bloomberg
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