'Period of disorientation' but banks are strong: Bain Capital's Connaughton
STORY: The broad issue with lenders, said Connaughton, "is that they've seen this huge shift in rate in a way that really is unprecedented with the Fed. So the implications of that are... did that present something that you didn't expect in your business model? I think that was the case with Silicon Valley Bank."
"And that's not just true about banks, it's true about private equity - where's refinancing risk going to arise over the course of the next two to three years with rates being this high?... So I think everybody is going through this period of disorientation...."
That said, Connaughton said high rates have put banks in a "great position" to lend, "and make some really good money doing so."