Jamie Dimon · Wall Street · Bitcoin · JPMorgan · CryptoSlate
The Financial Stability Board has warned that hidden or layered leverage can amplify losses when the cycle turns
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What looks like a modest leverage ratio on paper can expand quickly once these side vehicles are included.
Key facts
- Direct-lending volume in the US fell approximately 55% quarter over quarter, from $74.67 billion to $33.59 billion, even as North American funds raised $16.25 billion
- JPMorgan alone carries roughly $50 billion, while Wells Fargo's “financials except banks” portfolio totals $210.2 billion, including $36.2 billion in direct private credit exposure
- PIK accounted for an average of 8.1% of BDC interest and dividend income in 2025, roughly twice its pre-2020 share
- Average profit fell to negative $7.6 million from positive $26 million, a shift driven largely by loan markdowns and rising borrowing costs
Summary
01 Reuters found 28 of 53 publicly traded business-development companies turned loss-making in Q1 2026, up sharply from 12 a year earlier. 02 The losses suggest private credit stress may be feeding back into bank funding lines, tightening liquidity and risk appetite for Bitcoin. 03 Banks still say exposures are contained, but falling lending volumes and redemption pressure raise the question of when funding lines snap. JPMorgan Chase CEO Jamie Dimon told analysts in April that the roughly $1.8 trillion private credit market doesn't pose a systemic risk. He made that comment the same week executives at Citigroup, Bank of America, and Wells Fargo used nearly identical language to describe their own exposures as “comfortable.”