The United States Federal Reserve has reportedly requested detailed information from major US banks regarding their exposure to the private credit market. This inquiry follows a recent surge in redemption requests from private credit funds and an observable rise in troubled loans within the burgeoning industry. The central bank’s objective is to thoroughly assess the level of stress in the private credit sector and determine its potential to impact the broader financial system, according to a report by Bloomberg News, citing sources familiar with the matter. Reuters could not immediately verify the report, and the Fed declined to provide a comment.
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