Goldman Sachs’ CEO David Solomon offered an optimistic view on the dealmaking landscape during the bank’s second-quarter earnings calls on Monday, writes Business Insider’s Reed Alexander.

Solomon said the bank is seeing a “backlog” of transactions, calling it the “early innings” of a turnaround for a sector that’s been all but dead over the past few years.

If anyone would know about M&A’s return, it’s Goldman Sachs. The bank traditionally sits atop league tables ranking advisors of deals. Reed previously spoke to a dozen insiders about how Goldman bankers are raring to go after a tumultuous few years for the firm.

But even if Solomon’s prediction is self-serving, that doesn’t make it wrong. The bank’s underwriting revenue rose 39% last quarter thanks to more leveraged finance. Translation: Private-equity firms, whose inactivity has been a big piece of the M&A slowdown, are borrowing cash in preparation to cut deals.

An M&A return isn’t just good for bankers. The lack of deals has been a massive dam to the flow of the broader economy.

When dealmaking comes back, founders and early employees of startups can cash out and move on to fresh projects. Larger companies can make acquisitions that help them push into new areas.