Measuring Counterparty Exposures to Private Credit

By Ted Berg and Jung Hoon Lee

Published: March 12, 2026

This figure, which is based on a subset of private credit funds that provide additional counterparty details in Form PF, shows that global systemically important banks comprise most of the lending to private credit funds.

Private credit has expanded significantly over the past decade and forged linkages with traditional financial institutions. While vulnerabilities within this sector appear contained, counterparty exposures between banks and private credit funds are the main channel for risk transmission. This channel merits close monitoring given the industry’s rapid growth (Brief no. 26-02).

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