Shifting Focus: Regional and Sectoral Realignment

Adjustments to higher-quality markets

Geopolitical tensions and economic volatility have prompted many banks to reconsider their geographic and sectoral exposure, potentially shifting their focus towards sectors perceived as stable or strategic, such as infrastructure and defence.

One executive noted, “Our focus is increasingly on high-grade credit and sectors with inherent stability, ensuring we avoid undue exposure to volatile markets. This sectoral realignment provides us with greater predictability and resilience.” These strategic adjustments reflect a broader trend of careful regional and sectoral recalibration in response to evolving market conditions.