JPMorgan Chase (NYSE:JPM) has marked down the value of certain loans held by private credit lenders amid growing anxiety over the credit quality of the sector, the Financial Times reported on Wednesday.
The bank informed private credit lenders it had marked down the value of certain loans in their portfolios, the FT report said, citing people familiar with the matter.
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The move is aimed at limiting how much money JPMorgan will lend to private credit groups against the targeted loans, and signals growing caution among Wall Street banks over the sector’s exposure to high-risk borrowers.
The loans that JPMorgan devalued are to software companies, the FT report said. The sector is seen as increasingly vulnerable to disruptions from artificial intelligence.
The FT report said that the valuation cuts did not trigger margin calls, but were done pre-emptively to reduce available credit.
Concerns over the health of private credit lending came to a head in early-2026 after Blue Owl Capital Inc (NYSE:OWL) halted redemptions at a major credit fund, as it raced to return investor capital and pay down debt.
Blackstone Inc (NYSE:BX) also signaled it was seeing much higher redemption requests at a flagship fund.
