Rising Interest Rates Are Causing Alarm. Here’s What to Know.

Rising interest rates directly impact middle-market credit by increasing borrowing costs and tightening refinancing windows, which can strain leveraged companies with variable-rate debt or near-term maturities. Understanding the drivers behind rate hikes and their potential persistence is crucial for assessing credit risk and pricing loans appropriately. This story highlights the evolving interest rate environment that middle-market lenders must navigate, emphasizing the need for vigilance in underwriting and portfolio management amid heightened financial pressure on borrowers.