MFA releases white paper on sources of private credit lending data

The Managed Funds Association (MFA) released a white paper recently that examines the various sources of private credit direct lending data that is available to federal and state regulators.

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The paper, called “Private credit data: Readily available and fit for purpose,” emphasizes that private lending data are made available to regulators. It does a deep dive into the types of private lending data that is accessible through public filings, regulatory filings, and commercial datasets.

“Private credit direct lending enhances financial stability and is essential for U.S. economic growth. The industry provides nearly $2 trillion in capital to businesses of all sizes to help them grow, innovate, and create jobs,” Bryan Corbett, MFA president and CEO, said. “There is a wealth of data on private lending that are available to regulators as they look to monitor this important and growing asset class.”

Examples of public information filings include:

  • BDC reports: Filed with the U.S. Securities and Exchange Commission (SEC) and include detailed information on individual portfolio holdings.
  • Uniform Commercial Code (UCC) filings: Filed with state officials and notify all creditors of lenders’ security interest in the underlying collateral.
  • State insurance filings: Filed with insurance regulators, enabling them to monitor compliance with liquidity and investment quality requirements.
  • Bank call reports: Filed with banking regulatory agencies to monitor bank lending.
  • Form PF: Filed with the SEC and enables regulatory bodies to oversee private fund activities and potential financial stability risks.
  • State lending licensing and reporting requirements: Allow state regulatory authorities to ensure compliance with consumer protection requirements and lending laws.

The report said this type of documentation can help regulators coordinate to better utilize existing data sets to fill any perceived information gaps. It will also allow for oversight without disrupting businesses’ access to capital, U.S. economic growth, and the returns funds generate for their beneficiaries.