Financial Stability Report (Federal Reserve Board)
Summary
- Fair value losses on banks' available-for-sale and held-to-maturity securities portfolios totaled $300 billion combined at the end of 2025.p.35
- Stablecoin market capitalization moderated to $320 billion after growing 16 percent from July 2025 through the end of the year.p.46
- Private credit loans reached about $1.4 trillion in the second half of 2025, representing 10 percent of total U.S. nonfinancial corporate debt.p.51
Key insights
- Total business and household debt relative to gross domestic product continued to decline, falling to levels not seen since the early 2000s.p.9
- Geopolitical risks were cited by 75% of surveyed market contacts in Spring 2026 as a major potential shock to U.S. financial stability.p.11
- Risks stemming from artificial intelligence were highlighted by 50% of survey respondents in Spring 2026.p.11
- Hedge fund leverage remained near all-time highs and was concentrated in a small number of large funds.p.10
- Bank credit commitments to nonbank financial institutions grew to $2.6 trillion in the fourth quarter of 2025.p.40
- Total money market fund assets increased to $7.9 trillion as of January 2026, primarily driven by government money market fund inflows.p.45
- Semi-liquid private credit funds accounted for $425 billion in gross assets and $241 billion in net assets as of the second half of 2025.p.51
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