{"id":621457,"date":"2026-06-04T21:29:08","date_gmt":"2026-06-04T21:29:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/621457\/"},"modified":"2026-06-04T21:29:08","modified_gmt":"2026-06-04T21:29:08","slug":"blackstone-limits-withdrawals-from-private-credit-fund","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/621457\/","title":{"rendered":"Blackstone limits withdrawals from private credit fund"},"content":{"rendered":"

In the US, the collapse of two heavily indebted companies \u2013 Tricolor and First Brands <\/a>\u2013 that relied on private credit prompted alarm about the opacity of the sector.<\/p>\n

Jamie Dimon, JP Morgan\u2019s chief executive, suggested there would be more \u201ccockroaches\u201d to emerge from the private debt industry after the Tricolor and First Brands crises.<\/p>\n

The recent collapse of British company Market Financial Solutions<\/a> amid allegations of fraud has stoked fears about the health of the sector and left banks that backed the company nursing hundreds of millions of pounds in losses.<\/p>\n

Speaking at the Investment Association\u2019s annual conference on Thursday, Mr Bailey said: \u201cWe have seen disturbances [in private credit markets].<\/p>\n

\u201cWe shouldn\u2019t be surprised if there are idiosyncrasies, but we do have to look carefully at the interconnectivity in the system.\u201d<\/p>\n

He explained that the central bank was carrying out a stress test of the $11tn private credit market for this reason and warned that there are concerns about a lack of transparency.<\/p>\n

Mr Bailey has previously raised the alarm about private credit<\/a>, drawing parallels with the kind of lending activity seen in the run-up to the 2008 financial crisis.<\/p>\n

He has warned that banks, insurers and pension funds have become dangerously intertwined in private credit, meaning any crash could have unexpected effects on the global economy.<\/p>\n

Mr Bailey told conference attendees: \u201cDo the owners understand what they\u2019ve got? It will end much more smoothly and go much more smoothly if they do.\u201d<\/p>\n

The central bank governor added that the rapid development of artificial intelligence was linked to the expansion of private credit markets.<\/p>\n

However, Mr Bailey said there is a risk that markets are overvaluing the potential future returns from AI.<\/p>\n

He warned: \u201cWe could still get market corrections because the job of markets is to value the future earnings. That\u2019s uncertain.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"In the US, the collapse of two heavily indebted companies \u2013 Tricolor and First Brands \u2013 that relied…\n","protected":false},"author":2,"featured_media":621458,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[41129,210951,84,2980,6816,59,5499,84485,160075,5438,56,54,55],"class_list":["post-621457","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-andrew-bailey","tag-banks-and-finance","tag-business","tag-companies","tag-fraud","tag-gb","tag-jamie-dimon","tag-jp-morgan","tag-live-priority","tag-standard","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/621457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=621457"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/621457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/621458"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=621457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=621457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=621457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}