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Dallas and New York Fed banks to pilot survey of private credit
The survey will break the market into three borrower bands by EBITDA and publish findings in the first quarter of 2027, as regulators seek better data on lending standards and risks.
The Dallas and New York Federal Reserve banks will launch a pilot survey of the private credit market after the end of the third quarter, the New York Fed said. The effort targets an estimated $1.3 trillion market and aims to address regulators' longstanding data gaps around an industry that remains largely unregulated.
According to the New York Fed, the survey will segment private credit into three categories based on borrower size. It will cover an upper middle market with more than $100 million in EBITDA, a middle market with $30 million to $100 million EBITDA, and a lower middle market with less than $30 million EBITDA.
The New York Fed said the findings are expected to be published in the first quarter of 2027. The survey is intended to shed light on credit availability, credit provision, how lending standards have evolved, and potential implications for the broader economy and monetary policy.
The Reuters report noted regulators have struggled to assess potential risks to banks from private credit because of limited data and difficulty compelling disclosure from the industry. It also pointed to faster investor redemptions from some business development companies this year, driven by concerns about competition, falling returns, and fears that artificial intelligence could disrupt software businesses financed by private credit.