This is a

a exchange as at Goldman Sachs where we discuss the development shaping industries, markets, and the global economy.

I'm Allison Nathan, a senior strategist in Goldman Sachs research.

In today's episode, we're going to take a look at how the volatile markets

and tightening financial conditions are affecting companies ability and

willingness to raise capital. To help us understand how companies are approaching

their financing needs in today's economic climate, I'm delighted to be joined by Beth Hammock, Goldman Sachs

is co-head of the Global Financing Group within our Investment Banking Division.

Beth, welcome to the program. Thanks so much for having me, Allison. So just

to set the stage, companies have raised a record amount of equity and

dead across the capital markets thanks to record low interest rates we've had you

know a ton of monetary stimulus coming through the economy and there has been strong investor

demand but we seem to be at an inflection point you know we are entering a period

where the Fed is going to be raising interest rates. The market is responding to that. So how have financing

conditions evolved for companies in general? So 2021 was a spectacular year for financing.

We had record issuance markets in equity, not quite record in debt,

but very strong markets in debt, and obviously 2022 is shaping up to be something quite different.

The volatility that we've seen from the beginning of this year really kicked off with, as you noted, the Fed and the rhetoric change that they had coming out of the minutes that we got on January 6th, and then moving into their first meeting that they had later that month and all the way

through we've seen you know the markets now gearing up for the first hike happening in

March and I think we went from a period coming out at the end of last year where we had really, you know, robust

amounts of fiscal stimulus, monetary accommodation put in to where in a pretty short period of time

the markets have started pricing in not one or two hikes for the year,

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