JPMorgan Chase & Co. is tightening its lending to private credit funds after marking down the value of certain assets in their portfolios, the Financial Times reported. This move signals growing stress in the private credit market, a sector that has seen explosive growth in recent years.

Private credit has become a major force in lending, with firms raising billions to fill gaps left by traditional banks. However, rising interest rates and economic uncertainty have begun to strain the sector. JPMorgan's decision to restrict lending reflects mounting concerns about asset quality and potential defaults.

The bank's move could have ripple effects across the industry, as other lenders may follow suit. With private credit funds holding trillions in assets, any widespread markdowns could trigger broader market disruptions. JPMorgan's actions underscore the challenges facing the sector as it navigates a more difficult economic environment.