Gerard Cassidy: Mark, can you share this in your financial supplement, obviously, you give us good details on your credit picture and we’re talking about credit right now. The nonaccrual loans have been flat as a pancake for the last 12 months for you folks and the industry as well. And this is in light of the Fed funds rates, as we all know, have been up over 500 basis points. Can you guys share with us what’s — why we haven’t seen more — this is mostly corporate, of course, but everybody has been hanging in there very well in view of the fact that rates have gone up so much. What are your customers telling you or are you seeing that has enabled them to remain very healthy in light of a 500 basis point increase in interest rates?
Mark Mason: Yes. I think I’d point to a couple of things. One is, remember, we focus on the large multinational largely investment grade quality names. And so, that’s one important factor when you think about our ICG and corporate exposure there. The second thing I’d point out is, we have to remember that many of these companies had and still have very strong balance sheets and that they’ve managed that through the COVID and pandemic situation and that has positioned them well. I think the third thing is that and you’ve heard us mention how we’re proactively managing the prospect of a recession. And I think when I talk to other CFOs, I know that when Jane talks to other CEOs, they too are looking at their expense line. They too are looking at the efficiency of their organizations and opportunity to increase that efficiency in light of a potential slowdown or recessionary environment.
And then the final point is, I think a lot of firms have been that were proactive in the low rate environment, ensuring up that balance sheet strength. Now with that said, you’ve heard us also mention the prospect of a rebound in capital market activities, and that has to happen at some point. But sticking to your point around credit, I really think it’s those factors that you see play through in not only our very low NAL, but also our very low credit losses, credit cost that you’ve seen in our business.
Gerard Cassidy: And then as a follow-up, when you think about what we’ve seen with the Fed’s tightening over the last 12 months, banks like your own have positioned the balance sheet accordingly and I know the Bank Analysts Association of Boston, Michael did a good job explaining how you guys manage the balance sheet. And how — when you look at it going forward, do you think changes are coming because the Fed if they end — the Fed funds rate increase as we get to a terminal rate, how are you guys positioned the balance sheet, do you think going forward?
Mark Mason: Look, we’re constantly actively managing the balance sheet in light of not only our client needs, but also how we see the broader macro environment evolving and changing. And as you know, and I know you’ve seen and we’ve talked about before, we share in our Qs, our view on our estimate for interest rate exposure and what happens with 100 basis points swing in rates in one direction or another across the curve across currencies. You’ve seen that shift over the last number of quarters to the last quarter where that estimate for IRE was about $1.7 billion or so, but heavily skewed towards non-US dollar rates and currencies. And I think as we think about the view on how rates will evolve, you’ll see a continued shift there.
