Private credit fears grow as Morgan Stanley limits redemptions and JPMorgan cuts leverage

Morgan Stanley has limited redemptions from its North Haven Private Income Fund after requests surged, highlighting growing investor anxiety in the $2 trillion private credit market. JPMorgan is also reducing its exposure to the sector by marking down the value of loans used as collateral by private credit firms, particularly those linked to software companies. These actions, alongside increased redemption pressures at other major funds like BlackRock and Blackstone, signal rising scrutiny and caution within the fast-growing private credit industry.