During the first half of 2022, wealthy clients significantly increased borrowing, even as rising interest rates and a declining stock market eroded portfolio values. This trend indicates that affluent consumers remain financially confident, continuing to borrow and spend rather than brace for an economic downturn.

In an interview with the Wall Street Journal, Private Client & Family office practice co-leader Michael Kosnitzky noted that wealthy investors are tapping their securities-backed credit lines to acquire assets that appear undervalued amid market turbulence. His comments were later cited in a Fortune story examining similar borrowing trends.

“Volatility and market decline are when the wealthy make their money,” he said. “This is a buy time.”

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