According to US bank regulators, the credit risk tied to large syndicated bank loans is holding steady at moderate levels. But there's a catch—the underlying pressure is building. Higher interest expenses are eating into borrowers' capacity, compounded by shifting macroeconomic conditions. This matters because when funding costs climb and economic headwinds intensify, even "moderate" risk can tip quickly. The trend signals what we're already seeing across markets: tighter conditions, squeezed margins, and a potential squeeze on leverage. For traders and investors tracking systemic risk, this is worth monitoring closely as the broader economic picture continues to evolve.