Rebel Capitalist News Holy Sh*t...BlackRock Just Went Into Crisis Mode
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Mar 9, 2026 Discussion of BlackRock limiting withdrawals after record redemption requests and what that signals about market contagion. Comparison of different managers' responses and how redemption caps can reveal illiquidity. Examination of private credit’s elevated yields as compensation for illiquidity and sudden loan write‑downs. Brief on macro signals like the inverted yield curve and cautious positioning.
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Private Credit Problems Have Reached Major Managers
- Private credit fragility is spreading beyond niche firms into major managers.
- George Gammon cites BlackRock and Blackstone limiting redemptions after surge in requests, showing contagion from Blue Owl and others.
Tricolor And First Brands Were Early Warnings
- Early warnings about private credit failures came from smaller incidents like Tricolor and First Brands.
- George recounts these earlier 'cockroaches' and how critics dismissed concerns as fearmongering.
Liquidity Limits Reveal The True Risk Profile
- Illiquidity is the explicit business strategy for some private credit funds.
- Gammon highlights funds advertising 10%+ returns while imposing liquidity limits, signaling they buy hard-to-sell loans.