Navigating uncertainty in finance: Q&A with Stephen Philipson

In a year marked by significant volatility in markets, evolving geopolitical risks, and ongoing technological disruption, CFOs and finance leaders are adapting their strategies for growth and risk management.

As U.S. Bank Vice Chair and Head of Wealth, Corporate, Commercial & Institutional Banking (WCIB), Stephen Philipson and his team partner closely with CFOs to help their organizations grow and operate efficiently. U.S. Bank serves the nation’s largest companies, including nearly 90% of the Fortune 1000. In this Q&A, Philipson discusses the practical steps CFOs are taking to sustain performance, mitigate risks and position for long-term success in today’s dynamic corporate finance environment.

1. The past year has been defined by volatility in finance driven by several forces, including tariffs, currency swings, interest rate uncertainty and rapid technological change. How are finance leaders managing their growth and executing corporate risk management strategies in this environment?
   
   Philipson: CFOs are embracing “certainty with continued uncertainty.” Instead of waiting for stability, they’re building flexible strategies to adapt quickly as conditions change. This means optimizing liquidity, being agile on refinancing depending on market conditions, and using scenario planning to prepare for multiple outcomes. The focus is on maintaining optionality. This means being ready to act, no matter what headlines bring next. Companies are increasingly comfortable with the idea that uncertainty is here to stay and must be factored into every strategic decision.
   
   Even though we’re seeing some of the strongest corporate earnings in years, it’s essential for firms to remain vigilant. Finance leaders are actively hedging for a range of scenarios, including interest rate movements, currency fluctuations or commodity price swings. By deploying a mix of hedging tools and strategies, CFOs can mitigate downside risk while preserving upside potential. The best leaders are preparing for multiple outcomes and ensuring their organizations can respond quickly to changing conditions with effective corporate risk management strategies.
   
   
2. What specific actions are CFOs taking to manage these challenges and sustain performance?
   
   Philipson: CFOs largely are taking a disciplined, multilayered approach to financial management. They’re thoughtful about debt maturities and debt ratings to maintain maximum flexibility and seize opportunities as they arise. Rather than waiting for a capital project or refinancing event, they regularly review their capital structure as part of an ongoing process.
   
   To take some uncertainty off the table, many firms are seizing on favorable market conditions to extend, amend and increase financing. This is being done through bank debt, syndicated loan markets and corporate bond markets.
   
   Finance leaders are also using currency strategies — such as forwards, options and collars — to protect against adverse exchange rate movements. And interest rate swaps, caps and pre-issuance hedges are being used to manage exposure to fluctuating rates, aiming to provide more predictability around borrowing costs.
   
   
3. Geopolitical challenges have dominated headlines throughout the year. What are you discussing with clients to help them minimize adverse impacts of geopolitical issues outside of their control?
   
   Philipson: One approach clients take is to utilize foreign currency accounts, which allow firms to hold funds in many different currencies in the United States in FDIC-insured accounts. This helps reduce the need for frequent currency conversions and allows companies to centralize liquidity in the U.S., avoiding the complexity and risk of maintaining more accounts than necessary in foreign jurisdictions. It’s especially valuable as more overseas vendors and customers request payment in their local currency, and it can even lead to cost savings when suppliers offer discounts for settling in their own currency.
   
   Supply chain financing solutions are also important tools. With supply chain finance, a firm can hold onto cash longer by maintaining or even extending its payment terms while its suppliers have the option to receive early payment on their invoices. This approach supports the financial health of suppliers, which can be especially important during times of uncertainty or disruption. For the company, it means greater flexibility in managing working capital and the ability to keep supply chains running smoothly.
   
   
4. You previously built out the bank’s debt capital markets business, so you have a good historical perspective on the current state of corporate bond markets and how firms should be thinking about debt issuance. How are you advising firms with funding needs in the next year to approach the bond market?
   
   The current environment remains constructive, with strong demand for credit and spreads near historical tights. We continually stress that firms should be proactive and flexible. This is an environment where it often makes sense to consider issuing debt earlier than planned to take advantage of favorable conditions rather than waiting for a specific maturity date. Regularly reviewing capital structure decisions, monitoring market tone and being ready to act when windows open are key. Even in constructive markets, conditions can shift quickly, so preparation and agility are essential for successful funding.
   
   
5. We’ve seen an uptick in M&A activity in the second half of 2025. How are your clients who are considering a strategic move viewing the current environment?
   
   Clients considering strategic moves are generally viewing the current environment as an opportunity, supported by attractive financing conditions and a more receptive regulatory backdrop. Many are growing more comfortable with ongoing volatility in finance, accepting that uncertainty is part of the landscape. Companies are leveraging strong balance sheets and favorable credit markets to make a move and position themselves for long-term growth. The key is balancing optimism with discipline, ensuring that any move aligns with their broader strategic objectives and risk appetite.

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