The markdowns apply to loans made to software companies, which JPMorgan views as particularly vulnerable to disruption from artificial intelligence, the report said.
Sign up here.
Growing concerns about deteriorating credit quality, specifically regarding artificial intelligence-led disruption in the software sector, have triggered a wave of investor withdrawals from private credit vehicles, including BlackRock’s $26 billion HPS Corporate Lending Fund.
Jamie Dimon, the bank’s chief executive officer, told investors that it was being more prudent in lending against software assets, the report said, citing two people briefed on the closed-door meetings.
The reductions will limit how much the bank is willing to lend to private credit groups against those loans.
Reuters could not immediately verify the report. JPMorgan did not immediately respond to a request for a comment.
Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Rashmi Aich
JPMorgan marks down loan portfolios of private credit groups, FT reports
