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LOWER MIDDLE-MARKET DIRECT LENDING
FRIDAY, SEPTEMBER 4, 2026
CURRENT MARKET CONDITIONS
Credit is priced for an outcome the rates market is not
High yield spreads sit near their 2007 lows while the 10-year yields 4.74%, a 20-month high, and the front end prices a real probability of a September hike. Spread offers minimal compensation for that repricing. We favor senior secured, top-of-structure exposure with enforced documentation over reaching down in quality or leverage.
Read the Weekly Market Monitor, week ending 21 August 2026 →
TELLARO WEEKLY VIEW
Featured Research
WEEKLY MARKET MONITOR
The labor market closed the door on an imminent easing cycle, yet credit markets continue to underprice the higher-rate environment now confronting private credit investors.
Week Ending 4 September 2026
CIO PERSPECTIVE
A resilient but selective quarter. Capital remains available, and increasingly discriminating.
Second Quarter 2026
INVESTMENT COMMITTEE INSIGHTS
When there is more capital than there are loans to make, price stops describing risk, and the only scarce input left is the discipline to decline.
August 2026
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