1Q23 middle market syndicated lending dropped to US$27bn

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At US$26.7bn, 1Q23 middle market syndicated lending dropped to its lowest level since the pandemic. The year began on slow footing with depressed M&A activity and lower quality dealflow.  Then in March the banking crisis hit, leading to a lot more caution from issuers, sponsors, and lenders.  Non-sponsored lending of US$20bn dropped 32% from 4Q22 and 26% year-over-year.