Fed Banks Launch Private Credit Market Survey

The Federal Reserve Bank of Dallas and the Federal Reserve Bank of New York are teaming up to launch a pilot survey on the private credit market. This move comes as the US direct lending market has grown rapidly in recent years, reaching an estimated $1.3 trillion USD.

This figure is comparable to both the high-yield bond and broadly syndicated loan markets. However, unlike public credit markets, visibility into new private credit lending activity is more limited.

The survey aims to provide insights into the availability of credit, credit provision, the evolution of lending standards in private credit markets, and the implications for the broader economy and monetary policy.

The direct lending market will be segmented by borrower size: upper middle market (>$100 million EBITDA), middle market ($30-$100 million EBITDA), and lower middle market (<$30 million EBITDA).