Q4 2022 Lender Survey

Configure polled a broad swath of lenders focused on middle market, sponsor-backed deals regarding financing conditions and their institution’s views on 2023. Scroll down to read how it will impact deal-making and borrowers.

1. What is your firm’s general viewpoint on recession risk?

2. How would you characterize your firm’s approval process in Q4 2022, relative to one year ago?

3. How many new loans have been approved through FY 2022, relative to 2021?

4. Has your existing portfolio seen an increase in “watchlist” (e.g. default, missing budget, other considerations) credits?

5. How is your firm approaching lending in light of macroeconomic conditions? (Select up to 3)

6. How does maximum hold size compare to one year ago?

7. On average, how have spreads moved (excl. SOFR) during 2022?

8. On a spectrum of 1-10 (1 being least appetite, 10 being most appetite), rank your firm’s appetite for lending to the below industries:

9. How have spreads moved for consumer-facing/cyclical businesses vs non-consumer/acyclical businesses?

10. What are you expecting vis a vis M&A volumes in 2023?