So the question was 'Focusing on one of Reed Smith`s five Industry Groups, what current issues, aside from the use of Artificial Intelligence (AI), do you think will impact this sector? What opportunities or challenges could this present Reed Smith or our clients?
I chose financial services as one of the five industry groups to focus on, the main issue i referenced was rising gilt yields.
I said for RS PE clients , a key challenge is the increased cost of new acquisitions due to reliance on leverage debt. I also said an opportunity would be for RS to advise these PE clients on exiting mature investments to free up capital for new acquisitions.
I also mentioned how rising gilt yields will affect the demand for lending services from banks as companies take a risk conscious approach to borrowing - as well as some distressed borrowers being unable to repay loans, potentially leading to insolvency. RS advises the top ten banks in the US, UK, and EU so it is an opportunity for the restructuring and insolvency team to advise on debt recovery etc
So the PE point is separate to the R&I point.
Ultimately, I think this answers the question fairly well. - Ofcourse, i would always appreciate feedback!
