From the second quarter Phoenix Management "Lending Climate in America" Survey, results showed increased expectations for the performance of the domestic economy over the next six months while the long term expectations fell. In Q2 2015, the lenders grade for the performance of the U.S. economy over the next six months increased to a 2.46 GPA from 2.39 in the previous quarter. The long term GPA decreased by twenty one points to a 2.18 GPA. The past three quarter's surveys have shown a near term GPA being equal to or higher than the long term GPA, which has not happened since 2006.

Lender's responses also indicated that their financial institutions have a lower tolerance for leverage. Forty-five percent of respondents indicated that their institutions would consider a loan request with a Senior Debt to EBITDA multiple higher than 3.0x, down from seventy percent in the prior quarter. Lenders appear to be cautious about long term performance, which may be a result of the global economy's recovery, a strong U.S. dollar and oil prices.

"The dramatic reduction in leverage multiples combined with the continued reduction in long term GPA may indicate that the tide is beginning to turn," says Michael Jacoby, Senior Managing Director and Shareholder of Phoenix. "If this is indeed the case, we would expect to see a more tempered and rational lending environment as we enter the second half of 2015."

To see the full results of Phoenix's "Lending Climate in America" Survey, click here.

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