WSJ What’s News A $140 Million BlackRock Loss Revives Private Credit Worries
25 snips
Jan 30, 2026 
Matt Wirz, a Wall Street Journal reporter covering private credit markets, breaks down a surprising $140 million BlackRock markdown and why opaque valuations spark concern. He also walks through investor risks tied to business development companies and private loans. Short, clear takes on market reaction and lurking credit dangers.
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Valuation Blind Spots In Private Credit
- Private credit is hard to value because loans are not traded on public markets and managers set prices at their discretion.
- That opacity lets funds delay write-downs and hide losses until they suddenly materialize, as BlackRock's $140M markdown showed.
Sudden Markdowns Surprise Retail Holders
- Rapid changes in reported valuations can surprise individual investors because funds can retrospectively mark assets down.
- Many retail investors hold BDCs and may unknowingly sit on concentrated, illiquid risks that can turn into sudden losses.
Verify Valuation And Liquidity Before Investing
- Check whether your holdings are BDCs or private-credit funds and demand clarity on valuation methods.
- Avoid treating marketed 'secured loans' as liquid or fully transparent without confirming disclosure practices.