(The Wall Street Journal) -- It isn't just consumers who are having a harder time getting credit from lenders. It's hedge funds, too. Investment banks are cutting back on loans to hedge funds, eliminating some clients and raising borrowing fees for others. The lenders are slimming their balance sheets after heavy losses in the debt markets in recent months.

And, after taking multibillion-dollar writedowns, they also are becoming more cautious as the economy slows, according to people familiar with the situation.