While lenders are still working through plenty of 2020 problems with borrowers, there is appetite for new loans, according to Sanjeev Khemlani, a senior managing director who leads the Senior Lender Advisory practice at FTI Consulting.

“There’s a robust demand for credit product out there right now,” Khemlani says. “You can see that evidenced by the issuance in the leveraged loan and high-yield bond markets. It’s just on a tear and there’s so much demand that the yields have gotten compressed and the spreads on leveraged loans have come down just because there is more capital chasing returns.”

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