Private Credit Risks to Be Assessed by US Government Watchdog

The US Government Accountability Office is assessing the risks posed by private credit, in a sign that Washington is further scrutinizing the impact of the $1.7 trillion industry on the broader economy.

The agency’s examination, prompted by a request from US Senators Elizabeth Warren and Jack Reed to the Comptroller General, should result in a draft report this spring, according to a document seen by Bloomberg News.

The report will explore how the industry is interconnected with the broader financial system and how federal agencies monitor and mitigate the sector’s risks to financial stability.

It will be based in part ...