HSBC Pauses $4B Private Credit Investment After Fraud Hit

HSBC has paused a $4 billion investment into its own private credit funds, the Financial Times reported on Friday, more than a week after it took a $400 million hit linked to the collapse of British mortgage lender Market Financial Solutions. The pause by Europe's biggest lender is the latest sign of stress in the $3.5 trillion global private credit market. The market has ballooned in recent years and more recently attracted scrutiny from regulators following some high-profile losses and questions about the opacity of the sector. London-listed HSBC had announced the $4 billion investment plan in June 2025. The FT report said that no funds had yet been transferred and there were no current plans to do so, citing two sources familiar with the decision-making process. The report comes after HSBC Chairman Brendan Nelson told shareholders that the lender had 'substantially completed' a review of its lending policies and practices after it took the $400 million hit. Reuters could not immediately verify the report. HSBC did not immediately respond to a Reuters request for comment.