Syndicated loan desks describe the same pattern: deals still close, but the “flex” in pricing has vanished. For borrowers accustomed to rolling facilities with a phone call, the new normal feels like a confrontation.

Credit doesn’t vanish overnight; it hides in the footnotes.

Analysts we spoke with emphasized that default rates remain historically low — a fact that comforts investors more than CFOs, who must model cash flows quarter by quarter.

The story is less about panic than about friction: slower refinancings, smaller add-ons, and more frequent covenant tests.