Thread by @WholePicture_

"Moelis, whose firm advises on mergers, restructurings and capital raising, said corporations’ mounting leverage could become a concern if the economy doesn’t bounce back enough to compensate for the additional cash flows companies will need to cover debt. "

"While he doesn’t see a system-wide concern, he warned there could be issues under the surface that only come to light if the market deteriorates."

"Moelis said his firm’s lack of debt gives it flexibility that larger banking rivals don’t have."

“Our big competitors, even the most solid ones, are levered 10 or 12 to 1 -- that’s just the way a big bank works,” Moelis said. “When things get in trouble, they have to pull back.

We do the opposite. We have no leverage, and we move forward. I like to get aggressive when everybody else is moving backward.”