Visiting Scholar (Contractual) - MCMGA at International… · Location…

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Deliverables:

The expert will conduct a detailed analysis of the legal and structural features of bank credit facilities to private credit funds, as part of the assessment of bank–private credit interlinkages for the October 2026 GFSR Chapter 1. Drawing on the expert's extensive experience in bank balance sheet management and policy analysis, the GA team will incorporate the expert’s findings and insights to strengthen its evaluation of contractual vulnerabilities and collateral frameworks.

Expected output(s) and deadline(s):

• May, June, and July 2026 (up to 5 days per month). The expert will, through email correspondence and virtual meetings, provide structured summaries of the contractual features of a selected set of credit facility agreements extended by U.S and foreign banks to Business Development Companies. The expert will identify the different templates (contract structures) used by large banks and law firms and produce a report analyzing the collateral eligibility criteria, valuation methodologies, advance rates, collateral monitoring provisions, and dispute resolution mechanisms across different default scenarios for the most used templates.

Background/rationale for requesting short-term hire:

Bank exposures to private credit funds are drawing increasing attention, given their large and growing scale as well as their role as a key driver of marginal loan growth. These exposures are characterized by significant opacity, including limited disclosure of lending terms and structural features. Even when collateral consists of direct lending loans, key parameters—such as overcollateralization levels, eligibility criteria, monitoring procedures, and banks’ rights to adjust the collateral portfolio under stress—remain insufficiently transparent. In addition, dispute resolution frameworks between banks and private credit funds are often unclear, creating legal uncertainty in stress scenarios. Together, these factors underscore the need for a combined structural and quantitative assessment of the resilience of such exposures, including whether overcollateralization is adequate relative to underlying risks.

The project will analyze full-text credit facility agreements extended by banks to Business Development Companies (a special type of private credit funds), based on a representative sample across major lenders. The sample will capture variation in underwriting standards and creditor protections. Given the length and complexity of these agreements (often exceeding 200 pages), the analysis will combine AI-based summarization tools—already partially developed by GA staff—with a detailed manual review by the proposed expert.

The work will: 1) document key contractual features (collateral, monitoring, eligibility, lender rights); 2) assess heterogeneity and identify areas of weak or ambiguous protection; 3) provide a structured assessment of legal and structural vulnerabilities. Outputs will include inputs to the GFSR (notably Chapter 1) and supporting analytical materials on bank exposures to private credit.

Department:

MCMGA Monetary and Capital Markets Dept. Global Markets Analysis

Hiring For:

A14

The IMF is guided by the principle that the employment, classification, promotion, and assignment of staff shall be made without discrimination against any person. We welcome requests for reasonable accommodations for disabilities during the selection process. Information on how to request accommodations will be provided during the application process.