The Journal. 'Eject! Eject! Eject!' Inside the Private Credit Panic
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May 6, 2026 
Matt Wirz, a Wall Street Journal reporter covering private credit, dives into Wall Street’s private credit frenzy. He explores Blue Owl’s redemption chaos. The conversation follows how software bets and AI fears rattled investors. It also looks at why wealthy households and even 401(k)s are being pulled into an increasingly illiquid market.
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How Post Crisis Rules Fueled Private Credit
- Private credit grew after 2008 because risky lending demand survived while new rules pushed banks out of making those loans.
- Matt Wirz says Wall Street lenders left banks, formed less-regulated firms, and offered investors roughly 8% to 15% yields.
Blue Owl Turned Private Credit Retail
- Blue Owl supercharged private credit by selling it to mass-affluent investors through financial advisors, not just institutions.
- Matt Wirz says Blue Owl targeted wealthy households like dentists and lawyers, while concentrating loans in software companies later hit by AI fears.
Why Investors Could Not Get Out Fast
- Private credit funds promise higher yields but limit withdrawals, so investors can discover too late that their money is locked up.
- Ryan Knutson and Matt Wirz explain many funds only have to return 5% per quarter because cash is tied up in multi-year loans.