The private credit markets are functioning but financing for new middle-market deals is on pause as Covid-19 continues to roil the global economy.

First, the good news. Revolvers, which help companies fund themselves when cash is tight, are being funded, and working capital lines are available, one large market private lender told Barron’s. The bad news? There is no funding available for M&A deals. “There are no new deals to fund,” the lender said.