News Digest: JP Morgan enters direct lending with a $10 billion purse
January 17, 2023
A recently published news report says JP Morgan Chase would be making its foray into direct lending for which the company has set aside a purse of about $10 billion. This move could likely place it at loggerheads in the sector that includes the likes of Apollo Global Management and Ares Management Corp.
The report further revealed, quoting sources that the bank was also preparing to grow this purse substantially based on the opportunity that it sees to deploy additional capital. In fact, barely a week ago, JP Morgan officials had informed investors that the bank was open to business expansion around leverage lending.
Coming at a time when other US banks expect to book significant losses on risky loan from last year, the news came alongside the bank’s fourth quarter results that saw it beat profit forecasts on the back of a strong performance of its trading unit.