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5% limit; Blackstone's flagship fund BCRED experienced a surge in first-quarter redemption requests, with $3.7 billion withdrawn, marking the first quarterly outflow; Blue Owl Capital sold $1.4 billion in assets and permanently halted redemptions for one fund; Oaktree's flagship fund set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.
