JPMorgan Chase is reducing its exposure to the private credit market by lowering the value of certain loans used as collateral by investment firms, according to a source familiar with the matter. Many of the affected loans were issued to software companies.
The move signals growing caution at the largest U.S. bank as concerns rise about the stability of private credit investments. Private credit firms often borrow money from banks to boost returns, a strategy known as back leverage that can amplify losses if loans deteriorate.
JPMorgan marks down value of loan portfolios of some private credit groups, source says https://t.co/q40MFsenrH https://t.co/q40MFsenrH
— Reuters (@Reuters) March 11, 2026
Executives at JPMorgan, led by CEO Jamie Dimon, are reportedly taking early steps to limit risk rather than reacting during a crisis. The markdowns reduce how much private credit firms can borrow against their existing loans.
The Financial Times first reported the development. Analysts say pressure on software companies has increased as rapid advances in artificial intelligence raise concerns about disruption across the technology sector.
Also Read:
TIPP Staff
