Eurodollar University Private Credit Crisis Begins: BlackRock Blocks Investors in $26 Billion Fund
Mar 7, 2026
A deep dive into a major private credit fund blocking withdrawals and what that escalation means for markets. Discussion of dividend cuts and loans suddenly marked to zero. Exploration of fraud, misvaluation, and why investors are pulling capital. Survey of spillovers to other private credit players and links to oil, payrolls, and Treasury repricing.
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BlackRock Gates Withdrawals On $26 Billion Fund
- Private credit withdrawals have escalated into gating and blocking at major firms.
- BlackRock's $26 billion flagship fund received ~$1.2 billion requests and will honor only about half, signaling systemic stress.
Loans Marked From 100 To Zero Expose Valuation Gaps
- Mark‑to‑market failures are common in private credit and reveal hidden losses.
- Jeff Snider highlights loans valued at 100 that were later marked to zero, including the Renovo-related markdowns and another small loan in this fund.
Private Credit Moving From Early Panic To Escalation
- Investor psychology is transitioning from stage one to stage two in the bubble unwind.
- Snider defines stage one as initial withdrawals and questions, and stage two as accelerating outflows, indiscriminate redemptions, and forced selling.