On the same day Dimon raised the alarm with clients about the risks, JPMorgan released a statement confirming it was increasing its ‘direct lending commitment to $50 billion.’
‘This strategic move is designed to extend the firm’s direct lending capabilities and provide tailored private credit solutions to meet the evolving needs of clients,’ the firm said.
Under the new plan, corporate clients have the option to either take on a traditional loan or a private lending option, which could grant them access to more cash but see them saddled with a higher interest rate.
‘Since 2021, J.P. Morgan has successfully deployed over $10 billion across more than 100 private credit transactions, serving both corporate and sponsor clients,’ JPMorgan said in a February statement.
‘This latest commitment underscores the bank’s dedication to being a leader in both the broadly syndicated and private credit markets.’
JPMorgan holds onto private loans and collects interest until it matures.
America’s top banker reveals Wall Street’s hottest new trend that could spell financial doom – as he goes all in
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