Summary
Investment banks are redefining balance sheet optimization to enhance capital efficiency and liquidity amid private credit growth, regulatory change, and AI transformation. In 2026, sell side treasurers will increasingly leverage real-time data, tokenization, and automated collateral tools to prevent dead-end balance sheets and sustain profitability through structural and policy uncertainty.
Ted O’Connor
Ted is a Senior Vice President focused on Business Development at Arcesium. In this role, Ted works with leading financial institutions in the capital markets to optimize data, technology, and operational needs.
Sources:
[i] Accenture, June 2021. https://capitalmarketsblog.accenture.com/what-could-capital-markets-look-like-in-2025
[ii] WSJ, October 14, 2025. https://www.wsj.com/finance/banking/bank-earnings-goldman-jpmorgan-q3-profit-ee2cf2cc?
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[iv] FSB, December 10, 2024. https://www.fsb.org/2024/12/liquidity-preparedness-for-margin-and-collateral-calls-final-report/
[v] Bloomberg, October 21, 2025. https://www.bloomberg.com/news/articles/2025-10-21/us-banks-back-300-billion-of-private-credit-debt-moody-s-says?srnd=phx-markets&_bhlid=6ce1cbca1722a237525b70e9c627d331cdfdc3c0
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[vii] ABF Journal, June 15, 2025. https://www.abfjournal.com/navigating-the-confluence-asset-based-lendings-strategic-role-in-the-evolving-private-credit-landscape/
[viii] SEC, 2025. https://www.sec.gov/rules-regulations/staff-guidance/division-investment-management-frequently-asked-questions/form-pf-faq
[ix] Moody‘s, August 1, 2025. https://www.moodys.com/web/en/us/insights/balance-sheet-management/balance-sheet-management-a-growth-engine-for-banks-hidden-in-plain-sight.html
[x] McKinsey, October 23, 2025. https://www.mckinsey.com/industries/financial-services/our-insights/global-banking-annual-review
