Shares of banks and other financial institutions fell as reports that JPMorgan was limiting exposure to the private-credit business revived fears about Wall Street loans.
JPMorgan Chase has tightened lending to private credit funds and marked down the value of some loans in their portfolios, in the latest blow to the beleaguered Wall Street niche. Shares of firms that pool these loans to corporations, including Blackstone, KKR and Blue Owl, tumbled. Blackstone has now lost roughly one third of its value for the year to date due to the private-credit fears.
One strategist said the market scare over the war in Iran is unlikely to last.
"Usually at the very beginning of these episodes of turmoil there is limited information and bountiful imagination," said Jim Paulsen, a veteran Wall Street strategist, in his newsletter. "Imagination has been evident during the initial stages of the contemporary crisis - 'there is no upside limit for oil prices,' 'the Strait of Hormuz is closed and the oil supply cannot be fixed,' 'bond yields are destined to surge higher as inflation expectations worsen,' 'the Fed may even have to tighten again,' 'regime change will take years,' 'could there be a Iran-led terrorist attack on U.S. soil?' 'stock market leadership was already flagging before this began,' 'a correction is ensured and a bear is likely.' Who knows, some of these may prove to be true, but most probably won't."
Money manager Janus Henderson's board unanimously rejected an unsolicited takeover proposal from rival Victory Capital, reaffirming its recommendation that shareholders back a previously disclosed buyout from Nelson Peltz's activist investment firm Trian Fund Management and venture-capital firm General Catalyst.
Payment technology firm Revolut said it would formally begin banking the U.K. after a regulator lifted restrictions on its license.
The Justice Department is investigating Iran's use of Binance to evade U.S. sanctions.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-11-26 1814ET
