U.S. Treasury Seeks Information from Private Credit Firms Amid Rising Concerns

The U.S. Treasury Department has quietly begun requesting detailed information from private credit companies about their business models and connections to the regulated financial system. According to Odaily, this move comes as the private credit sector faces increasing pressure, causing investor unease and raising concerns about systemic risks in the financial industry. The economic turmoil triggered by the Iran conflict is a recent driving factor, but the private credit sector has also been hit hard due to its exposure to the software industry and internal disruptions last fall. The Treasury's data request marks a new phase in the Trump administration's efforts to understand and mitigate potential damage from volatility in private credit. A Treasury spokesperson stated that the department "regularly consults with market participants and financial regulators on private credit issues." For several months, Treasury officials have been holding one-on-one meetings with leaders in the private credit sector. According to two sources familiar with the process, the Treasury's Office of Capital Markets is now leading the information-gathering effort and has requested written responses.