Major Wall Street banks and private credit funds are implementing measures to manage growing concerns over private credit risks. U.S. banks have tightened lending standards, while funds have restricted investor redemptions. As of June 2025, U.S. banks had extended nearly $300 billion in loans to private credit and $285 billion to private equity funds, with $340 billion in undrawn commitments, according to Moody's.
Key actions include JPMorgan Chase lowering valuations of certain private credit loans and reducing lending, Morgan Stanley restricting redemptions for its North Haven Private Income Fund, and BlackRock imposing a 5% redemption limit on its HPS Corporate Lending Fund. Blackstone's BCRED fund raised its redemption cap to 7% after net redemptions of $1.7 billion, while Blue Owl Capital sold $1.4 billion in assets to repay investors and suspended redemptions for one fund. Cliffwater also limited fund redemptions to 7% to manage high investor requests.
Wall Street Banks and Funds Tighten Controls Amid Private Credit Market Strain
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