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JPMorgan, Morgan Stanley Launch Credit Default Swaps on Private Funds

4/19/2026

37 7 Full Breakdown

Summary

Story summary

JPMorgan Chase & Co. and Morgan Stanley have started trading credit default swaps tied to private credit funds, signaling a shift in investor bets.
The CDS reference targets funds managed by Blackstone and Apollo Global Management, expanding tradable shorts in private credit.
Private-credit investors withdrew $20.8 billion in Q1 2026 amid redemption pressures.
Concerns persist about volatility and stress in the financial system because of the move.

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Story summary

JPMorgan Chase & Co. and Morgan Stanley have started trading credit default swaps tied to private credit funds, signaling a shift in investor bets.
The CDS reference targets funds managed by Blackstone and Apollo Global Management, expanding tradable shorts in private credit.
Private-credit investors withdrew $20.8 billion in Q1 2026 amid redemption pressures.
Concerns persist about volatility and stress in the financial system because of the move.