The primary private credit market continues to make its shy comeback, after a faltering start to the year. At least two deals have been announced in the past week, and even a couple of European LBOs — with €3-€4bn of debt — are knocking at direct lenders’ doors. 

However, behind the scenes lenders are taking a dim view of terms, many of which feel dangerously loose as the winds of volatility pick up.

“It’s a terms issue,” said a direct lender operating in large club unitranches. “Previous conditions just won’t wash anymore.”