March 12 (Reuters) - A move by JPMorgan Chase ( JPM ) to

mark down the value of certain loans to private credit players

will reduce lending to the funds, a source familiar with the

matter said.

The move from the largest U.S. lender extends a flurry of

jitters across the roughly $2 trillion private credit market,

with Wall Street juggernauts facing heightened withdrawal

requests in recent weeks.

The bank's credit agreements for private credit allow it to

re-mark valuations based on the collateral of the fund if there

is a market dislocation, the source had told Reuters earlier,

adding the marks are not significant.

The bank went through its financing portfolio name by name

and then sector by sector and put different marks on loans such

as those with underlying software exposure, the source said.

The move means the lender is restricting the amount of

leverage for the borrower, the source said.

The decision has impacted a small cohort of JPMorgan's ( JPM )

borrowers, the report said. It added that the lender reserved

the right to revalue private credit assets at any time.

JPMorgan ( JPM ) declined to commenton the report.

Shares of the bank were down 1.7% in early trading, amid a

selloff in the broader market.

Concerns over credit quality - highlighted last year by the

collapses of First Brands and subprime lender Tricolor - have

intensified in recent months as investors worried about

AI-powered products' threat to software companies' pricing

power.

The rush to liquidity has prompted several large players,

including rival Morgan Stanley ( MS ) and BlackRock ( BLK ), to

limit redemptions as requests for key funds crossed the 5%

threshold, which ​conventionally allows an asset manager to do

so.

Some, like Blackstone, have responded by relaxing the

limit to ‌7% ⁠or beyond.

The move has not triggered any material margin calls so far,

a Bloomberg report added, citing people familiar with the

matter.