Shares of banks and other financial institutions rose as concerns about private credit subsided.
HSBC shares rose after reports that the British bank’s $400 million write-down was related to “back leverage” support it provided to collapsed mortgage broker Market Financial Solutions.
“Private credit is a very mixed bag — they’re throwing out the baby with the bathwater right now,” said Oliver Pursche, senior vice president at financial advisory Wealthspire.
Problems with the niche would eventually work their way through the system, said Pursche.
Apollo Global Management’s shares ticked up after the investment firm logged better-than-anticipated quarterly adjusted earnings. The New York manager of buyout and other alternative investment funds said it planned to offer investors daily valuations for its private-credit funds by the end of September, a move that could help ease worries about the health of an opaque world of lending.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-06-26 1740ET