Question · Q2 2026
Ryan Kenny asked about client sentiment regarding the economy, the 'animal spirits' in the middle market versus large corporate deals, and the top risks. He also questioned the sensitivity of sponsor clients to interest rates and the potential impact of a Fed pause on the pipeline.
Answer
Scott Adelson, CEO, noted a greater degree of uncertainty due to geopolitical issues but observed clients' impressive willingness to proceed with business despite the 'noise.' Lindsey Alley, CFO, contrasted the middle market's less volatility with the larger cap space's pent-up demand. Lindsey Alley also stated that while lower rates are better, capital availability is the biggest driver for sponsors, and the middle market is less affected by rates than large cap deals.