Stone Ridge Asset Management has told investors in a consumer and small-business loan fund that it can only pay out 11% of redemption requests, marking another blow to private credit markets. The fund holds loans from companies like Affirm and Block, and recent redemption requests were so high that Stone Ridge limited payouts to a fraction of what investors wanted back, according to an investor update seen by The Wall Street Journal.

The move signals deepening stress in private credit as investors rush to exit positions amid market volatility. Stone Ridge's decision to cap redemptions at just over one-tenth of requests suggests liquidity has dried up in this corner of the market, leaving investors unable to access their capital when needed.

This development follows broader turmoil in private credit, where rising interest rates and economic uncertainty have made it harder for funds to meet withdrawal demands. The fund's focus on consumer and small-business loans makes it particularly vulnerable to economic headwinds, and Stone Ridge's move could foreshadow similar actions by other managers facing redemption pressure.