Here’s what we’re reading these days.

Less than half of private credit borrowers would generate positive free cash flow in a mild stress scenario, according to a recent analysis by S&P Global Ratings that reviewed more than 2,000 issuers with more than $400 billion of outstanding debt. In the near term, liquidity looks sufficient and covenant relief can help lenders navigate potential issues. The analysis is available here. 

The Dean of Valuation, Aswath Damodaran, takes inventory of the impact investing movement, more a decade and several trillions of dollars into the project in Good Intentions, Perverse Outcomes: The Impact of Impact Investing, Damodaran arrives at a number of constructive suggestions for rescuing the effort by focusing more on results than intentions.

Lenders are updating sustainability-linked loan documents as maturities are set to increase and scrutiny of sustainability claims is intensifying. More details in Bloomberg’s Potential Greenwashing Claims Have ESG Bankers Seeking Legal Advice.

The sale of Signature Bank’s commercial real estate portfolio may be a test of private market appetite for bank CRE loans, and the sale could cast a pall over property values according to the WSJ’s Signature Loan Sale Likely to Lower Commercial-Property Values.

Sponsors are running a full-court press for high new worth investors, as the number our U.S. households with a new worth between $1 million and $5 million has ramped up in the past decade, according to a recent Bloomberg article. Streamlined, predictable capital calls will have as much importance to individuals as to institutional investors and will continue to be a challenge that fund finance lenders are asked to solve.