March 12 (Reuters) - Glendon Capital Management has said that private credit lenders such as Blue Owl are obscuring weaknesses in their portfolios and a sharp correction in debt markets is approaching soon, the Financial Times reported on Thursday. 

Glendon said that private credit funds managed by Blue Owl and many of its rivals had "misrepresented" loss rates in their portfolios and were sitting on "larger losses than reported," the FT report said, citing a presentation.

Reuters could not immediately verify the report. Blue Owl did not immediately respond to a Reuters request for comment outside regular business hours, while Glendon could not be immediately reached. 

A flurry of bad news following several credit issues in recent months has drawn fresh scrutiny to the roughly $2 trillion private credit market, as investors question the health of loan portfolios and the resilience of borrowers in a higher-interest-rate environment.

On Wednesday, Morgan Stanley limited redemptions at one of its private credit funds, and JPMorgan Chase reduced the value of some loans to private credit funds.