US EditionBlackRock Stock Slide As Private Credit Firms Tumble - BlackRock (NYSE:BLK)
BlackRock and Morgan Stanley limited redemptions after investors sought to withdraw over 9% and 11% of assets, reflecting rising defaults near 9% in private credit funds, experts say.
- BlackRock Inc shares fell on Thursday as fresh stress in private credit weighed on major asset managers, with shares down 2.74% at $925.15.
- Earlier this month, BlackRock curtailed withdrawals at its $26 billion HLEND fund after redemption requests reached 9.3% of net assets, drawing industry attention.
- Morgan Stanley restricted redemptions after a large withdrawal attempt at its North Haven Private Income Fund, where investors sought nearly 11% but received about $169 million; the bank warned private credit faces sluggish M&A, credit risks, and shrinking yields.
- Market observers say investors are cautious about loans tied to software companies, with JPMorgan marking down some and tightening standards, and Louis Navellier noted default rates approaching 9.3%.
- Analysts point to Jamie Dimon's 'more cockroaches' warning as withdrawal limits and mark‑downs position private credit as a strained sector that could pressure asset managers.
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13 Articles
Wall Street's Own Stock Is Getting Hammered on Reddit and Here's What Investors Are Missing
Quick Read Morgan Stanley (MS) capped redemptions at its North Haven Private Income Fund after investors requested withdrawals of nearly 11% of shares outstanding in a single quarter, returning only $169M or 45.8% of tender requests. JPMorgan Chase (JPM) simultaneously marked down software-linked loans and tightened lending to private credit firms, signaling stress across the roughly $2 trillion private credit market. Redemption gates at major…
Why Morgan Stanley Stock Sank by 4% Today
Key PointsThe financial services giant's investment management arm imposed a limit on redemptions from a private credit fund.Market players are worried that private credit providers are more risky than previously thought.10 stocks we like better than Morgan Stanley › Something close to a crisis is unfolding in the world of private credit, and on Thursday, Morgan Stanley's (NYSE: MS) stock was affected. On news that its investment management unit…
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