JPMorgan, Goldman offer hedge funds way to short private credit

Group 1 - Goldman Sachs and JPMorgan Chase are providing hedge fund clients with options to bet against the $1.8 trillion private credit market [1] - Goldman has created indexes that include European financial institutions and business development companies, while JPMorgan's offerings also feature alternatives managers and BDCs [2] - Bank of America previously had a basket of European financial firms exposed to private credit but has since retracted its recommendation for clients to bet against these companies [3] Group 2 - The private credit market is experiencing pressure due to a wave of investor redemptions, particularly from concerns about exposure to software companies affected by advancements in artificial intelligence [4] - The turbulence is primarily occurring in the US, where private credit funds have drawn significant investments from retail investors, leading firms like BlackRock, Morgan Stanley, and Cliffwater to impose withdrawal limits [5]