Financial Stability Reports Explore Private Credit

Abstract

Private credit has grown markedly in recent years and now collectively maintains over $1.7 trillion in assets under management. This development has recently caught the attention of the Federal Reserve (2023) and International Monetary Fund (2024) in their roles as financial stability overseers. After describing the private credit market, this post summarizes the analyses and conclusions presented in recent financial stability reports prepared by the two agencies, as well as the initial regulatory steps being taken to assess potential concerns.

Keywords: Private Credit, Financial Stability, Securitization