JPMorgan Chase & Co. is tightening lending to private credit funds following markdowns on specific loan portfolios. The move preemptively reduces available credit for these funds.
The restrictions specifically target loans issued to software companies. This sector faces increased scrutiny over asset valuations.
The decision aligns with warnings from CEO Jamie Dimon regarding potential risks in the private credit market. The action signals growing unease among major U.S. banks toward the rapidly expanding credit segment.
Lenders are specifically evaluating risks related to the impact of artificial intelligence on borrowers. The Financial Times first reported the policy shift.