ICE: Borrowers reach record tappable equity as cash-out refis drive runoff

Record tappable equity signals increased borrower capacity to refinance and extract cash, directly impacting loan runoff dynamics in the middle market. The surge in cash-out refinancings suggests heightened liquidity needs or strategic capital redeployment, which can accelerate prepayment risk for credit portfolios. Understanding these trends is critical for middle-market lenders and investors as they navigate valuation and risk assessment amid evolving borrower behavior and credit cycle shifts.