Eurodollar University BREAKING: BlackRock’s Credit Fund Just Blew Up (What You Must Know)
Jan 28, 2026
A deep dive into a major private credit write-down that rekindles wider concern about shadow banking risks. It examines concentrated losses from a few positions and flawed valuations hiding in private debt. The conversation highlights rising distress signals like PIK income and non-accruals and explains how liquidity strains, redemptions, and bank backstops could escalate the crisis.
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Public Filing Reveals Hidden Private Credit Risk
- BlackRock TCP's 19% NAV write-down exposes broader private credit fragility hidden in the shadow banking system.
- The public filing offers a rare window into problems likely common across non-disclosed private credit funds.
Excel Error Exposed Complacent Due Diligence
- The Tricolor Excel debacle showed managers ignored obvious red flags sitting in plain sight.
- That complacency repeats in recent cases like Renovo and other middle-market loans.
Six Loans Drove Most Of The Losses
- Heavy concentration in a few loans created outsized losses; six investments caused two-thirds of TCP's NAV decline.
- That concentration reveals reckless portfolio construction in funds marketed as 'low risk'.