From MarketWatch, March 11:
The troubled private-credit industry was under further pressure after a report that JPMorgan Chase was tightening its lending criteria while a $33 billion fund was reported to have seen heavy withdrawals.
The Financial Times, citing people familiar with the matter, said the banking giant has marked down the value of loans in private-credit portfolios. The report said the move didn’t trigger margin calls but will have the impact of curtailing lending into the sector.
JPMorgan declined to comment.
The move comes as Bloomberg reported heavy redemptions from Cliffwater’s flagship private-credit fund that had $33 billion in assets. The fund is structured to allow for up to 5% of its shares each quarter to be redeemed, and for the fund manager to buy up to 2% more, but the report said the requests are in excess of that amount.
Many private-credit funds have seen heavy outflows, as investors worry about their exposure to middle-market software companies, which were the recipients of lending during a 2021 wave of deals.
Blackstone turned to its own employees to help meet demand for redemptions from a private-capital fund while BlackRock capped withdrawals from one of their funds....
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Also at MarketWatch:
German defense giant stock that’s surged has run out of gas
The Krupps and DuPonts and all the other deceased armaments makers have to be laughing their non-corporeal asses off.
