Fed puts $1.3tn private credit into core market monitoring

US private credit has grown to a scale comparable with core corporate funding markets, and the Federal Reserve Bank of Dallas and the Federal Reserve Bank of New York on 5 August announced a pilot survey of the direct lending market. The market is estimated at more than $1.3tn, with reported size comparisons to both high-yield bonds and broadly syndicated loans suggesting it is now large enough to merit monitoring alongside those markets.

The survey will segment the direct lending market by borrower size and is expected to launch following the end of Q3 2026, with aggregate-level findings anticipated in Q1 2027.

The New York Fed said the exercise would provide insights into credit availability and the evolution of lending standards in private credit markets. It also said the survey would examine implications for the broader economy and monetary policy.

Sources: newyorkfed.org · newyorkfed.org