Despite seeing increasing risks to start the year such as rising inflation, a partial equity market selloff, and the beginning of a commodity crisis in Europe, many lenders remain confident about credit availability in the near term. In a recent Mergers & Acquisitions News article, Brandon Zero details how several lenders are viewing these risks and why most believe that rising interest rates affecting private equity’s ability to do deals is likely overblown.
In regards to inflation specifically, many lenders are paying more attention to the trend rather than the headline number we saw in 2021. There is some belief that after a huge year for physical goods consumers will be switching their spending habits towards services which would help alleviate some supply chain issues and help ease inflation down from the 7% figure reported in December of 2021.
Read the full article here: https://www.themiddlemarket.com/news-analysis/lenders-see-strong-credit-prospects-even-as-market-turbulence-mounts
