Through Q3, the MM lending market remained fairly aggressive in terms of rates, leverage, price flexes, covenant structures, and headroom reflecting flat new-deal volume (demand), robust capital raising among Direct Lending and other credit platforms (supply), and continued strength in the economy.

However by year-end, the credit market had turned more cautious due to rising concerns about an approaching recession, escalating trade tensions, the government shutdown, heightened stock market volatility, and further mixed economic signals.