CFO survey signals rising rate fears as small firm stress mounts

Rising rate fears among CFOs, especially within small firms, signal increasing stress that could pressure middle-market credit quality. As borrowing costs climb, smaller companies may face tighter liquidity and heightened default risk, impacting leveraged finance portfolios. Monitoring CFO sentiment offers an early warning on credit conditions and potential shifts in risk appetite, making this insight critical for middle-market lenders navigating a more challenging rate environment.