‍Q1 2025 marked our highest deal volume since Q2 2020—the onset of the pandemic. It reflects a shift in market behavior.

Borrowers, lenders, and sponsors are all navigating what’s arguably the most fragile credit environment in over a decade. Interest rates remain elevated, spreads are widening, and sentiment is slipping. Amid all this, credit insurance is emerging not just as a risk tool—but as a strategic enabler.

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The Macro Backdrop: A Storm That’s Still Gathering

The signals are everywhere—and they aren’t subtle.

• Bankruptcies surged to 188 corporate filings in Q1 2025, the highest since Q1 2010. (S&P Global)

• Credit spreads are widening, especially in high-yield markets. (MarketWatch)

• Consumer sentiment collapsed to 50.8 in April—the second-lowest since 1952. (Wall Street Journal)

• 5-year inflation expectations rose from 3.0% to 4.4% year-over-year.

Even small businesses are pulling back. The NFIB Small Business Optimism Index dropped to 97.4 in March—the largest dip since mid-2022. Plans for hiring and growth hit multi-year lows. (Reuters)

And it’s not just sentiment. According to Allianz Trade, global insolvencies are on pace to rise for a fifth consecutive year. Their downside scenario? A full-blown trade war could add over 6,000 insolvency cases in the U.S. alone by 2026.

Credit Spreads Are Flashing Warnings

We’re still early in the credit cycle turn—but spreads are moving.

“Credit spreads are the canary in the coal mine.” — Emily Roland, Manulife (via MarketWatch)

What’s at stake? Mispricing. Loans are being priced off assumptions that no longer hold—particularly around liquidity, recovery, and repayment strength.

This is where credit insurance enters the picture.

What Credit Insurance Enables for Banks

Lending Continuity Without Compromise

Credit insurance allows banks to keep lending to strategic clients—even as internal risk thresholds tighten. Committees stay comfortable. Lending flows continue. Deals get done.

Value That Reaches the Sponsor

Risk mitigation benefits don’t stay locked inside the bank, they often flow downstream. Some examples are:

• Lower DSCR thresholds

• Tighter spreads

• Flexibility on non-IG obligors

• Relaxed concentration limits

Each bank has its own mechanism of what it passes onto its borrower—but across the board, insurance helps unlock flexibility that sponsors feel.

A Structuring Tool—Not Just a Backstop

Smart credit teams aren’t just using insurance for protection. They’re using it to:

• Support internal alignment across credit, risk, and origination teams

• Strengthen the overall credit package for smoother approvals

• Increase clarity and confidence in execution timelines

In this environment, that’s not a bonus—it’s essential.

Why Deal Flow Is Surging at Energetic Capital

Sponsors Are Getting Proactive

We’re seeing more deals come in before they hit the bank market. Why?

• Sponsors want lending partners who recognize and price in the value of credit insurance.

• They’re looking for capital that rewards risk mitigation—not penalizes uncertainty.

• And they’re leveraging Energetic’s network to navigate to aligned lenders.

We’re not intermediaries, but we know where the traction is—and we help direct traffic accordingly.

Banks Are Engaging Earlier

In many cases, banks come to us with deals in-flight—facing internal headwinds.

• Credit committee not convinced?

• Structuring stalled?

• Internal exposure limits too tight?

We help close the gap—strengthening credit packages and unlocking approvals.

No Preferred Lenders. Just Alignment.

We don’t push deals toward “preferred partners.” Our only objective is to get the deal over the line—efficiently, strategically, and on structure.

Energetic Capital’s Role in This Market

We’ve transacted on 1,500+ renewable infrastructure projects—directly with some of the largest banks, sponsors, and developers.

Our custom credit insurance structures are purpose-built for project finance risks in renewable infrastructure transactions. They’re designed to help capital flow into the deals that should get done—but often stall under outdated credit assumptions.

We’re not just supporting financing—we’re redefining how transactions get underwritten, structured, and executed.

In a market this fragile, that’s not a support function—it’s a capital markets role.

Ready to Navigate Today’s Credit Conditions?

In today’s market, certainty of execution isn’t just a differentiator—it’s the ask behind every term sheet. Credit insurance helps lenders and sponsors meet that ask without compromise.

This is the moment to bring in a partner that can unlock capital, de-risk outcomes, and accelerate execution.

Credit insurance isn’t a last resort. It’s a first-move advantage.

Let’s talk.

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