Reuters: Private Credit Market Panic Spreads to Wall Street as Some Funds Restrict Investor Redemptions
BlockBeats News, March 16th. According to Reuters, the tightness in the private credit market has spread to Wall Street. Several major U.S. banks are tightening their loans to this industry, while some funds have restricted investor redemptions.
JPMorgan Chase has downgraded the value of some loans to private credit funds, reducing its lending; Morgan Stanley limited redemptions of one of its private credit funds as investors sought to redeem nearly 11% of the shares; BlackRock's flagship fund HLEND restricted further withdrawals after redemption requests surged to $1.2 billion in the first quarter, reaching the 5% limit; Blackstone's flagship fund BCRED experienced a surge in first-quarter redemption requests, with $3.7 billion withdrawn, marking the first quarterly outflow; Blue Owl Capital sold $1.4 billion in assets and permanently halted redemptions for one fund; Oaktree's flagship fund set its repurchase limit at 7% due to 14% redemption requests.
Market sentiment has been pressured by valuation concerns, transparency issues, and cases like the bankruptcy of First Brands, an automotive supplier, particularly affecting funds with significant exposure to the software industry. Moody's data shows that as of June 2025, U.S. banks have nearly $300 billion in outstanding loans to private credit institutions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Forex Today: US flash Consumer Sentiment and Canadian jobs in the limelight
Malaysian Ringgit: Fiscal anchor case – MUFG
Nasdaq Drops Over 300 Points After OpenAI's Revenue Comes In $20 Billion Short
BUZZ-Revolution Medicines stock drops due to concerns over pancreatic cancer drug data
On October 8, Revolution Medicines (RVMD.O) shares fell 8.1% in afternoon trading to $185.91. RBC Capital Markets stated that the share price decline appeared to be driven by the latest U.S. Food and Drug Administration (FDA) review documents regarding the company's pancreatic cancer drug Rasonque, particularly the disclosure of objective response rate data for specific RAS mutation subgroups. RBC pointed out that overall survival, rather than objective response rate, is a more meaningful indicator of efficacy, and that the sell-off overlooked Rasonque's broad activity across a variety of RAS mutation subgroups. RBC stated: "While we acknowledge that today's share price decline takes place against the backdrop of overall weakness in the biotech sector, we still believe that the market's reaction to the FDA review documents is an overreaction, given that the drug was approved on the basis of highly clinically meaningful efficacy and has received positive feedback from physicians." Including intraday fluctuations, the stock has more than doubled year-to-date. (Note: For the convenience of non-English speakers, Reuters has automatically translated its reports into several other languages. Automated translations may be inaccurate or lack necessary context; Reuters does not guarantee the accuracy of these automated translations and provides them only for reader convenience. Reuters does not accept liability for any damage or loss arising from the use of automated translation features.)
Crypto prices
More
