ChainThink reports that, on March 16, according to Reuters, tensions in the private credit market have spread to Wall Street, with several major U.S. banks tightening lending to the sector and some funds restricting investor redemptions.
JPMorgan Chase has reduced loan-to-value ratios for certain private credit funds, which will decrease its lending; Morgan Stanley has restricted redemptions for one of its private credit funds after investors sought to redeem nearly 11% of shares; BlackRock’s flagship fund HLEND has limited further withdrawals after redemption requests surged to $1.2 billion in Q1, reaching its 5% cap; Blackstone’s flagship fund BCRED saw a sharp increase in redemption requests in Q1, with $3.7 billion withdrawn—the first quarterly outflow on record; BlueCrest Capital has sold $1.4 billion in assets and permanently halted redemptions for one fund; Cliffwater’s flagship fund has set its repurchase cap at 7% due to redemption requests totaling 14%.
Market sentiment has been weighed down by concerns over valuations, transparency issues, and cases such as the bankruptcy of automotive supplier First Brands, significantly pressuring funds with substantial exposure to the software industry. Moody’s data shows that, as of June 2025, U.S. banks had nearly $300 billion in outstanding loans to private credit institutions.