Financials Down Amid Private Credit Fears — Financials Roundup

Shares of banks and other financial institutions fell as private-credit fears resurfaced.

KKR shares fell after the alternative-investing giant said its largest private-credit fund held by individual investors took a $560 million loss in the first quarter when a growing number of loans tipped into default.

Rival Apollo Global is reportedly holding talks to sell MidCap Financial Investment, its publicly listed business-development company.

Shares of Blue Owl, a private credit manager that had recouped some stock-market losses in recent sessions due to easing of credit-market stress, fell by more than 4%.

Separately, Apollo struck deals for two different live-events businesses, publicly traded Emerald Holding and closely held Questex, as part of a plan to create a platform for in-person gatherings.

J.P. Morgan says Big Tech is behind $455 billion in new debt across 27 issuers.

One strategist said the stock-market boom was set to continue feeding on itself as the "wealth effect" generated by robust returns would lead to higher spending by wealthy stockholders, in turn lifting corporate earnings.

"First-quarter [aggregate S&P 500] earnings were up nearly 28% year-over-year, beginning in April estimates were for around 13% growth," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "When you're growing at this magnitude, a higher multiple is warranted."

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

May 11, 2026 18:12 ET (22:12 GMT)