The Federal Reserve Eyes $1.8 Trillion in “Shadow Credit”: Dallas and New York Fed Launch First Private Credit Survey

Zhihui Finance APP has noted that two regional Federal Reserve Banks in the United States aim to examine how lending standards are evolving in the rapidly growing private credit industry through a new survey launched on Monday.

According to a statement, this survey, jointly conducted by the Dallas Fed and the New York Fed, will "provide insights into credit availability, credit disbursement, the evolution of lending standards in the private credit market, as well as their impact on the broader economy and monetary policy." The survey will also assess trends in third-quarter loan documentation, borrower demand, and new loan approvals.

After a turbulent year, the $1.8 trillion private credit industry is under increased scrutiny, with portfolio transparency a key concern for regulators and investors. In September, the U.S. Securities and Exchange Commission (SEC) issued an "important reminder" regarding current private asset valuation requirements for managers, urging them to enhance monitoring and encouraging auditors to maintain "professional skepticism."

According to the Dallas Fed, the survey will outline a series of entry thresholds applicable to institutions typically active in the U.S. direct private lending market. Lenders must meet a threshold of at least $50 million in assets under management dedicated to direct lending—so-called direct lending refers to private debt financing granted directly to sub-investment-grade companies.

Within this scope, direct lending includes loan structures such as term loans, delayed draw loans, and revolving credit facilities, but excludes instruments not typically part of direct lending institutions’ business, such as broadly syndicated loans and high-yield bonds.

Notably, the survey breaks down questions based on the varying impact managers face when issuing loans to small, medium, and large enterprises, using the borrower’s EBITDA as the basis—ranging from below $30 million to over $100 million. The statement notes that the survey's conclusions will not be used for regulatory purposes, and are expected to be released in the first quarter of 2027, reflecting the two regional Feds’ ongoing efforts to gather market intelligence.