Continued economic stability has fostered healthy fundamentals in most leveraged credit, but risks are accumulating in loans to lower-rated private borrowers.

CRE investor sentiment seems to be perking up, even as high rates continue to challenge the market.

Ask an investor how they’re feeling and they’re likely to echo the wary positivity of Larry David’s famous line on “Curb Your Enthusiasm”—“prett-ay, prett-ay, prett-ay good.”

Economic data remains strong, but consumer and business sentiment look increasingly shaky. Are we at a tipping point?

Macro sentiment around the path of interest rates, preference for risk-taking and the general economic outlook has had a remarkably similar impact on corporate credit in 2023 as it did in 1H 2022.