Following a solid run of issuance in 2025, expectations for the leveraged finance market were high heading into 2026. January provided a strong start, but hopes for a banner year were tempered by a broad spike in volatility. Concerns about AI-driven disruptions and geopolitical risks prompted retail investor outflows and a reevaluation of underwriting standards by investors.
How these factors play out in the coming months and how both borrowers and investors manage these newfound risks will likely influence the market’s ability to recover for the rest of the year. Learn more about first-quarter performance and trends shaping the leveraged finance market in our latest report.
William Blair Leveraged Lending Index
Each quarter we ask middle-market lenders to rate overall conditions in the leveraged finance market on a scale of 1 to 5, with 5 being the most borrower-friendly conceivable.
