Competition is Rising Across the Credit Market

The conversations at this year’s TMA Summer Extravaganza painted a consistent picture:  the credit market remains highly competitive, with lenders continuing to compete aggressively for quality opportunities.

Across discussions with lenders, attorneys, liquidators, and other restructuring professionals, several themes surfaced repeatedly:

1. Competition for quality deals continues to intensify, particularly in the ABL market.
2. After a slower first half, many expect credit market activity to accelerate through the remainder of the year.
3. Winning mandates increasingly requires creativity and flexibility, especially from non-bank lenders.
4. Covenant-light and even covenant-free structures are becoming more common in the lower middle market.
5. While many stressed companies have successfully refinanced, Article 9 sales and ABCs are beginning to gain momentum, particularly in biotech and other innovation-driven sectors.

Perhaps the biggest takeaway wasn’t concern, but cautious optimism. Capital remains available, and advisors who can navigate increasingly complex situations will be in high demand.

The conversations at TMA reinforced something we’ve been seeing firsthand: today’s market rewards preparation and creativity. Whether the path forward is a refinancing, strategic transaction, or restructuring, the ability to adapt quickly will continue to separate the best outcomes from the rest.