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LOWER MIDDLE-MARKET DIRECT LENDING
SATURDAY, SEPTEMBER 12, 2026
CURRENT MARKET CONDITIONS
Higher rates returned. Spread did not.
The case for a September hold collapsed as inflation reaccelerated and markets rapidly repriced the first rate hike of the cycle. With Treasury yields resetting higher while credit spreads remain historically tight, downside protection lies in seniority, structure, and documentation—not incremental spread.
TELLARO WEEKLY VIEW
Featured Research
WEEKLY MARKET MONITOR
The first rate hike of the cycle is now largely priced, but credit continues to offer limited compensation for higher refinancing risk. The cushion is now in seniority, not spread.
Week Ending 11 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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