More Bad News for Private Credit as JPMorgan Chase (JPM) Marks Down Several Loans

FomoAnxiety · 2026-03-11T14:42:55+00:00

JPMorgan Chase has marked down loans held by private-credit groups, signaling concerns about deteriorating credit quality in the $2 trillion private equity sector. This situation is exacerbated by rising investor withdrawals and fears of defaults among software companies.

FomoAnxiety

2026-03-11 14:42:55

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JPMorgan Chase JPM -0.51% ▼ , the world’s largest bank, has marked down the value of several loans held by private-credit groups, another bad sign for the shaky $2 trillion private equity industry.

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Concerns are rising on Wall Street over deteriorating credit quality in the murky and opaque world of private equity, an industry that has ballooned since the 2008 financial crisis. Private credit refers to loans issued to riskier borrowers and private companies that are funding large buyouts and other deals.

News that JPMorgan has marked down several loans made to software companies is adding to the jitters. The remarking of loans that have gone bad by JPMorgan is especially worrisome because it doesn’t happen often, say analysts.

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While these loans can be arranged quickly and serve borrowers too risky for banks, rising concerns over credit quality and exposure to software firms vulnerable to AI disruption are clouding the fast-growing market.

The industry has seen a wave of investor withdrawals this year on fears of potential defaults by software companies.

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Last week, BlackRock said it limited withdrawals from a flagship debt fund after a surge in redemption requests, while Blackstone disclosed that its private credit fund, known as BCRED, faced a surge in withdrawals in the first quarter.

Private credit has also been hit by questions over valuation and transparency, with concerns about Blue Owl replacing client redemptions with promised payouts, and the exposures of some players last year to the bankruptcies of a U.S. auto parts supplier and a subprime auto lender.

JPMorgan CEO Jamie Dimon told investors at the bank’s leveraged finance conference last week that it was being more prudent in lending against software assets, the Financial Times added, citing two sources.

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