⚠️The US private credit exodus is accelerating:

Will the broader market notice?

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Global Markets Investor
March 12, 2026

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GLOBAL MARKETS INVESTOR’S PORTFOLIO IS 🔥UP +97%🔥SINCE JANUARY 2024

DURING THE MARCH-APRIL 2025 MARKET TURMOIL, MAJOR US INDEXES FELL NEARLY 20%, WHILE THE GMI PORTFOLIO GAINED OVER 5%, FIND OUT HOW BELOW:

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Morgan Stanley also capped withdrawals at 5% from its North Haven Private Income Fund.

This follows BlackRock limiting redemptions last week after investors tried to pull 9.3%.

Adding to the pressure, JPMorgan has marked down the value of certain loan portfolios held by private credit groups, specifically loans made to software companies, according to FT.

The move will limit how much the bank lends to private credit groups against those loans going forward.

Growing concerns over credit quality, questionable loan valuations, and AI disrupting software borrowers are driving the wave of redemptions.

Meanwhile, BDC markdowns are widespread: FS KKR Capital, $FSK, has seen its premium to NAV collapse by over -40 percentage points over the last 12 months, while Hercules Capital, $HTGC, is down ~-30 points.

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In total, The median listed BDC is trading at ~0.8x its net asset value (NAV), the lowest since 2020.

This means the market is pricing these funds at a ~20% discount to what they claim their loans are worth.

By comparison, in the 2008 Financial Crisis, this ratio collapsed to ~0.35x.

As a result, private credit stock prices are crashing:

Blue Owl Technology Finance is down ~-30% since June 2025, Blue Owl Capital and Blackstone Secured Lending are each down ~-20%, and Ares Capital is down ~-15%.

The $2 trillion private credit industry is going through a severe stress. Investors want out, but the exits keep getting smaller.

More insights about the sector can be found in the following analysis:

⚠️US private credit stocks are under heavy pressure

US private credit default rates could hit levels not seen since the 2008 Financial Crisis

globalmarketsinvestor.beehiiv.com/p/us-private-credit-stocks-are-under-heavy-pressure

INVESTMENT PORTFOLIO UPDATE (March 9, 2026)

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