Bank of America just made a big, balance-sheet-backed push into private credit.

$BAC is committing $25B to private credit deals as Wall Street banks try to compete more directly with alternative asset managers in a fast-growing part of corporate lending. A sharp selloff in several private-market managers after $OWL halted redemptions at a fund and sold assets to pay down debt, highlighting liquidity and sentiment risk in the space.

Why this matters for markets

Private credit has been taking share because it can move faster than traditional bank lending and often faces different (typically lighter) constraints than banks. Now, big banks are trying to “take it back” by committing their own capital, aiming to keep client relationships, fees, and deal flow in-house.

What to watch next

1. Bank-led private cr ...