News

Lending Market News

Short notes on the developments that change what borrowers can raise, and at what price: interest rates, bank appetite, private credit and regulation across the markets we work in.

23 October 2026Europe

European refinancing slows as spreads widen

Carlsquare's review of the third quarter found refinancing volumes in the European leveraged loan market down almost 70 percent on the previous quarter, to 5.5 billion euros, while direct lenders completed an estimated 9.6 billion euros of deals, their busiest quarter since late 2025. For mid-market borrowers, direct lenders are filling the gap, but at an average spread of 526 basis points so far this year. Companies with maturities in 2027 should start preparing now.

Source: Carlsquare, European Debt Markets Q3 2026

16 October 2026United States

U.S. direct lending volume at its lowest since 2023

KBRA DLD reported 38.9 billion dollars of direct lending in the third quarter, the lowest quarterly total since the second quarter of 2023, while spreads on lower middle market buyout loans rose to SOFR plus 528 basis points, a two-year high. Slower deal flow means funds are competing harder for good credits. Borrowers with clean numbers are in a strong position to push on terms beyond the headline margin.

Source: KBRA DLD, October 2026

1 October 2026Australia

Scrutiny of Australian private credit increases

After redemption freezes at several funds and a warning from ASIC in June that fund valuations must be current, accurate and grounded in realistic assumptions, the regulator has signaled enforcement action in the sector. The Reserve Bank's October Financial Stability Review judged that private credit does not pose a system-wide risk at present. For borrowers, the strength and funding of an individual lender now deserve as much attention as its terms.

Source: Clayton Utz, October 2026

29 September 2026Australia

Reserve Bank of Australia lifts the cash rate to 4.60 percent

The Reserve Bank raised the cash rate target by 25 basis points, its fourth increase of 2026, saying it remains focused on ensuring high inflation does not become embedded. Australian floating-rate borrowers will feel the move directly. Interest cover covenants and hedging deserve a fresh look in any facility being refinanced or negotiated now.

Source: Reserve Bank of Australia

17 September 2026United Kingdom

Bank of England holds Bank Rate at 3.75 percent

The Monetary Policy Committee voted six to three to keep Bank Rate at 3.75 percent, with three members preferring a rise to 4 percent. With the vote this close, UK borrowers should not plan on cheaper money soon. The next decision, on 5 November, sets the base rate for invoice finance and other facilities priced over it.

Source: Bank of England

16 September 2026United States

Federal Reserve raises rates by a quarter point

The Federal Open Market Committee raised the target range for the federal funds rate to 3.75 to 4 percent in a unanimous decision. Floating-rate loans priced over SOFR now cost more, and lenders will test interest coverage on the higher base. Companies refinancing in the next year should model their covenants with room for further increases.

Source: Federal Reserve

August 2026Canada

Bank of Canada: private credit remains a limited source of business funding

A Bank of Canada analysis found that non-bank loans have held at about 15 percent of Canadian business credit over the past decade, with banks and public debt markets providing about three quarters of external funding. Canadian mid-market companies still borrow mainly from banks. Specialty and cross-border lenders are most useful where a bank's policy does not fit.

Source: Bank of Canada

August 2026United States

U.S. banks keep business lending standards steady

The Federal Reserve's July Senior Loan Officer Opinion Survey found standards for commercial and industrial loans basically unchanged on net for firms of all sizes, with banks narrowing loan spreads and reporting stronger demand from larger and middle market firms. Bank appetite is intact. For straightforward refinancings, banks remain the benchmark on price.

Source: Federal Reserve, July 2026 Senior Loan Officer Opinion Survey

Each note summarizes a public source, linked beneath it, with our view on what it means for borrowers. It is general information, not advice on any financing.

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