Markets entered the year with increased volatility as investors reassessed elevated valuations and navigated a more uncertain macro backdrop. In the face of conflict in the Middle East and rising energy prices, the Fed recently opted to defer a further rate cut while assessing the full impact of ongoing developments.
In this environment, credit markets are increasingly focused on issuer fundamentals, with a strong preference for resilient, non-cyclical businesses with stable cash flows. For most other issuers, while spreads have not notably increased, lenders are increasingly introducing bespoke financing structures as guardrails.
Contact Michael Brill, Managing Director and Head of Private Capital Markets at Dinan Capital Advisors, for more report insights.