19 July 2023

HSBC Worldviews – Jaron Campbell

An in-depth look at key sectors and how they influence international markets.

The first half of the year has brought a wave of news impacting financial markets. From a banking crisis to tightening monetary policy and overseas events, U.S. companies have faced economic uncertainties as they plan for growth and expansion. HSBC Commercial Banking’s Head of U.S. Corporate Banking Jaron Campbell says clients are looking for a steady ship to help them navigate rocky waters. In the latest edition of HSBC Worldviews, Jaron shares his insights on the topics on clients’ minds and how the bank can offer stability.

HSBC Commercial Banking’s Head of U.S. Corporate Banking - Jaron Campbell

What is the most common question that clients are asking about in the current economic environment?

Liquidity. Liquidity. Liquidity. We’re about a year removed from when capital markets seized up following the conflict in Europe. The flight to quality from a liquidity standpoint remains top of mind for our clients. The Fed said they may raise interest rates again, so markets are responding. In short, money is getting more expensive, and that’s where we can come in and leverage the full resources of the bank, including our fortress balance sheet and international expertise, to support our clients’ growth ambitions. They recognize the breadth of our value proposition, which is hugely important. In short, our reputation for stability and reliability is helping us win business.

What does the market look like post-banking crisis?

What happened earlier this year left many companies without a banking partner, and for some, a partner who didn’t prioritize their needs and goals. That’s especially true for companies that are not yet generating revenue or aren’t a household name. At HSBC, we’ve opened our doors and leveraged our value proposition to onboard these clients and help them thrive. The addition of the HSBC Innovation Banking franchise will expand our client base, especially among early-stage technology, healthcare and life sciences companies. It’s not only the financial strength of the bank they’re choosing, but also the high level of service and care we provide. Those are things clients believe are important, and so do we. Those are the things that we do well.

Do clients believe the U.S. will enter a recession?

Many of the companies that we support are international in some shape or form. So, even if there is a recession in the U.S., there are other markets where our clients experience growth, including Asia, the Middle East, and Europe. And our bank is incredibly bullish on several important overseas markets.

A domestic firm that banks only U.S. companies may have a concentration of risk, but we serve a diverse set of companies that can offset recession impacts, if one ever does occur. As of right now, our clients report that their businesses remain strong. There’s no indication yet that consumers are significantly cutting back spending amidst higher interest rates, and that’s a good sign.