--- title: "HSBC Sits On $4 Billion In Private Credit Dry Powder Amid Sector Turmoil" type: "News" locale: "en" url: "https://longbridge.com/en/news/286601255.md" description: "HSBC Holdings Plc has not yet utilized its nearly $4 billion in private credit funds amid sector turmoil. The bank aims to compete in the $1.8 trillion private credit market but recently faced a $400 million loss linked to a loan to Apollo's Atlas SP Partners. This loss led to a 6% drop in HSBC's shares. Concerns over default risks and high interest rates persist, prompting regulatory scrutiny from the SEC and Congress regarding the private credit sector." datetime: "2026-05-15T18:12:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286601255.md) - [en](https://longbridge.com/en/news/286601255.md) - [zh-HK](https://longbridge.com/zh-HK/news/286601255.md) --- # HSBC Sits On $4 Billion In Private Credit Dry Powder Amid Sector Turmoil **HSBC Holdings Plc** (NYSE:HSBC) has not yet deployed its nearly $4 billion in dry powder from its asset managers’ private credit funds. Last year, the bank announced that it would be looking to expand in the private credit space, with a goal of competing with major firms such as Blackstone and Apollo Global in the $1.8  trillion private credit market.  Despite the lag, a spokesperson for HSBC told Bloomberg that they are "committed to the asset managers offering in private credit funds." HSBC recently recorded a $400 million loss linked to a loan extended to **Apollo's Atlas SP Partners unit,** which had financed U.K.-based mortgage lender **Market Financial Solutions** before its collapse into bankruptcy proceedings amid fraud allegations, Reuters reported earlier this month. **Read Also: SEC Enforcement Chief Says Agency Is 'Attuned' To Risks In Private Credit** Following the announcement of HSBC's $400 million loss, shares of the bank's stock fell 6%.  This loss comes as the private credit space has experienced a downturn in the market.   While some feel the overall private credit sector is not facing systemic risk, others believe that pockets of the sector have been "obliterated."  Investors have voiced concerns regarding default risks, high interest rates, and the disruption AI may have on the software sector. Major banks have reported more than $108 billion in exposure. As a result, government agencies have been keeping an eye on the sector. Earlier this month, U.S. Securities and Exchange Commission Chairman **Paul Atkins** said the SEC was investigating alleged fraud in the private credit sector. Speaking at the **Milken Institute Global Conference**, Atkins did not identify which specific firms are under investigation. He noted that the SEC, U.S. Department of the Treasury and the Federal Reserve are all monitoring the private credit space. Congress has also pressed several major private equity firms, including **Apollo Global Management, KKR & Co., Carlyle Group, BlackRock** and **Blue Owl Capital**, for detailed disclosures on their private credit operations. The U.S. House Financial Services Committee requested information on sales practices, leverage, fees, incentives, audits, risk management and potential economic vulnerabilities. _Photo by TungCheung via Shutterstock_ **Read Also: BDC Exodus: Investors Pull More Cash Than They Put In For The First Time** ### Related Stocks - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [HSBH.US](https://longbridge.com/en/quote/HSBH.US.md) - [BX.US](https://longbridge.com/en/quote/BX.US.md) - [APO.US](https://longbridge.com/en/quote/APO.US.md) - [NA.US](https://longbridge.com/en/quote/NA.US.md) - [KKR.US](https://longbridge.com/en/quote/KKR.US.md) - [CG.US](https://longbridge.com/en/quote/CG.US.md) - [BLK.US](https://longbridge.com/en/quote/BLK.US.md) - [OWL.US](https://longbridge.com/en/quote/OWL.US.md) - [SSTK.US](https://longbridge.com/en/quote/SSTK.US.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [APO-A.US](https://longbridge.com/en/quote/APO-A.US.md) - [APOS.US](https://longbridge.com/en/quote/APOS.US.md) - [KKRS.US](https://longbridge.com/en/quote/KKRS.US.md) - [KKR-D.US](https://longbridge.com/en/quote/KKR-D.US.md) - [KKRT.US](https://longbridge.com/en/quote/KKRT.US.md) - [BTX.US](https://longbridge.com/en/quote/BTX.US.md) - [BIT.RT*.US](https://longbridge.com/en/quote/BIT.RT*.US.md) - [BDJ.US](https://longbridge.com/en/quote/BDJ.US.md) - [BSTZ.US](https://longbridge.com/en/quote/BSTZ.US.md) - [BIT.RT.US](https://longbridge.com/en/quote/BIT.RT.US.md) - [OBDE.US](https://longbridge.com/en/quote/OBDE.US.md) - [OBDC.US](https://longbridge.com/en/quote/OBDC.US.md) - [OTF.US](https://longbridge.com/en/quote/OTF.US.md) ## Related News & Research - [HSBC Sticks to Its Buy Rating for NWS Holdings (NWSZF)](https://longbridge.com/en/news/286628463.md) - [HSBC Sets Out Board Line-Up and Committee Roles Under Hong Kong Rules](https://longbridge.com/en/news/285855624.md) - [Key facts: HSBC takes $400m Atlas‑SP loan charge; issues €3.5bn notes](https://longbridge.com/en/news/286175629.md) - [HSBC to Issue US$1.5 Billion Perpetual Contingent Convertible Securities](https://longbridge.com/en/news/286011865.md) - [Key facts: HSBC prices $4.5bn notes; UK bill allows back office sharing](https://longbridge.com/en/news/286337364.md)