A $140 Million BlackRock Loss Revives Private Credit Worries

Summary

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WSJ What’s News – PM Edition

Episode: A $140 Million BlackRock Loss Revives Private Credit Worries
Date: January 30, 2026
Host: Alex Osoloff
Guests: Matt Wirtz (WSJ Credit Reporter), Kelly Cloonan (WSJ Reporter)

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Episode Overview

This episode covers the latest headlines from business, politics, and global affairs with a major focus on the private credit markets. It highlights a surprising $140 million loss in a BlackRock private credit fund, raising concerns over transparency and risks in this booming investment sector. Other top stories include President Trump’s pick for Federal Reserve chair, dramatic swings in precious metals markets, new trends in fast-casual restaurant menus centered on protein, and international developments, particularly in Ukraine and Cuba.

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Key Discussion Points

1. BlackRock’s $140 Million Private Credit Loss (03:33–05:27)

• Topic: A BlackRock private credit fund suffered a $140M loss, marking down its assets by 19%.
• Significance: This event revives existing concerns over the opacity and valuation risks in private credit funds, particularly as these products become more accessible to retail investors.

Why Are Private Credit Investments Hard To Value?

• Matt Wirtz: “The short answer is in the name. They are private…there’s no marketplace to trade them. And as a result of that, there’s no clearly available price and it’s up to the discretion of the fund’s manager to determine what the value of the investment is.” (03:33)
• Shift in U.S. corporate lending: Many loans now occur outside the traditional banking system, moving into less transparent private credit funds that are “super hot and super lucrative for Wall Street.” (03:50)
• Despite this growth, these funds are less transparent than traditional investments (stocks, publicly traded bonds).

What Does This Mean for Ordinary Investors?

• Matt Wirtz: The “story on what these assets were worth” changed rapidly—the fund reported a $140M markdown within months, reflecting longstanding trouble with certain investments. (04:29)

• Many ordinary investors own these funds through business development companies (BDCs).

• Alex Osoloff explains: “BDCs are business development companies that typically make high interest loans to companies. And this BlackRock fund we’re talking about is an example of one.” (04:54)

• Warning for investors: Due to opacity, “you as an investor may not know that you’re sitting on some time bombs in your fund that can turn into a massive loss, as it did in this case.” (05:04, 04:42 quoted earlier)

• Quote Highlight:

  • Matt Wirtz: “These funds can drag out the write downs of their assets because there is this opacity. And so you as an investor may not know that you’re sitting on some time bombs in your fund that can turn into a massive loss, as it did in this case.” (05:04)

BlackRock declined to comment on the incident. (05:32)

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2. Markets and Policy Headlines

Trump’s Fed Chair Pick: Kevin Warsh (05:40–06:41)

• President Trump nominates Kevin Warsh, age 55, as Federal Reserve Chair.
• Markets react with uncertainty: "Many are optimistic that Warsh will preserve the Federal Reserve's independence, even as they're also concerned he might be far from the easy money kind of Fed chair that President Trump wants.” (05:46)
• Market fallout: Stocks fell, dollar rallied, gold saw its worst one-day drop in decades (-11%), silver down 31%.
• Warsh's confirmation may be complicated due to a criminal investigation into current Fed Chair Jerome Powell.
• Sen. Thom Tillis: Would oppose confirmation until the Powell probe is resolved.

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3. Fast-Casual Restaurants Embrace "Protein" (07:25–10:33)

Protein as a Menu Watchword

• Chains like Chipotle, Starbucks, Dunkin’, and Subway are marketing high-protein menu items.
• Kelly Cloonan: Companies are “really just trying to capitalize on consumers' growing interest in protein…the offerings run the gamut,” from extra meat to novel items like “protein-infused pizza dough.” (08:36)
• Many offerings are repackaged or remarketed existing menu items, rather than fundamentally new foods.

Will This Trend Boost Restaurant Visits?

• Early results are mixed. Starbucks reports low awareness but sees some repeat visits driven by protein offerings.
• Kelly Cloonan: “People that I talk to seem pretty interested in the more value-oriented protein offerings… seeing protein options that are a little cheaper is something they’re very interested in.” (09:49)

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4. International Affairs and Energy (10:39–12:08)

Ukraine

• President Zelensky supports US-backed pause on energy strikes between Ukraine and Russia.
• A possible first step in a US-mediated push for peace.

Cuba

• Mexico halts oil shipments to Cuba due to US pressure and President Trump's tariffs.
• Cuba faces risk of fuel shortages and economic collapse; US openly seeking regime change.

Oil Majors

• Chevron and Exxon report lowest profits since 2021.
• Trump wants US firms to rebuild Venezuela’s oil industry, but Chevron says it’s too soon for long-term commitments.

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5. January’s “Crisis a Day”: National and Global News Recap (12:08–13:28)

• A barrage of crises: Venezuela raid, officer-involved shootings, US-Iran tensions, European military maneuvers in Greenland, ongoing violence in US cities, immigration changes.
• Damian Poletta (Washington coverage chief):
  • “When you have a crisis every five minutes, people start tuning it out because they have to live their lives...There’s a sense this could become a liability for the White House and Republicans.” (12:58)

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Notable Quotes & Memorable Moments

• Matt Wirtz (on private credit):
  • “You as an investor may not know that you're sitting on some time bombs in your fund that can turn into a massive loss, as it did in this case.” (05:04)
• Alex Osoloff (on BDCs):
  • “BDCs are business development companies that typically make high interest loans to companies. And this BlackRock fund we’re talking about is an example of one.” (04:54)
• Kelly Cloonan (on protein foods):
  • “These aren’t necessarily always new offerings. A lot of it is just putting more marketing dollars behind it and really putting these items in protein focused menus.” (09:20)
• Damian Poletta (on 2026 news cycle):
  • “When you have a crisis every five minutes, people start tuning it out because they have to live their lives.” (12:58)
  • “Americans like certainty, Americans like stability. There’s a sense this could become a liability for the White House and Republicans.” (13:18)

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Timestamps for Key Segments

• Don Lemon Arrest & top political headlines: 00:33–03:33
• BlackRock Private Credit Loss & Interview with Matt Wirtz: 03:33–05:27
• Market Turmoil – Kevin Warsh as Fed Nominee: 05:40–06:41
• Restaurant Protein Trend & Interview with Kelly Cloonan: 07:25–10:33
• Ukraine, Cuba, Oil, & January crisis commentary: 10:39–13:28

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Episode Takeaway

This news-packed episode shines a spotlight on the hidden risks of private credit funds for ordinary investors, the evolving landscape of the Federal Reserve, and how consumer health trends are reshaping fast-casual dining. The persistent pace of crises in January 2026 is setting the stage for what could be a turbulent midterm election year, with both markets and the public longing for greater stability and transparency.

Transcript

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[Alex Osoloff]

Former CNN anchor Don Lemon was arrested over a protest at a Twin Cities church. Plus, the private credit market is showing some cracks.

[Matt Wirtz]

These funds can drag out the write downs of their assets because there is this opacity. And so you as an investor may not know that you're sitting on some time bombs in your fund that can turn into a massive loss, as it did in this case.

[Alex Osoloff]

And and will Trump's Fed chair pick be a friend to Wall Street? Investors aren't sure. It's Friday, January 30th. I'm Alex Osoloff for the Wall Street Journal. This is the PM edition of what's News, the top headlines and business stories that move the world today. Former CNN anchor Don Lemon has been arrested by federal agents over a protest that disrupted a church service in St. Paul, Minnesota, earlier this month. Lemon, who now works independently, said he was there as a journalist, not a participant. Lemon's lawyer called the arrest an attack on free speech. The arrest came following pressure from President Trump to prosecute protesters who have clashed with federal agents in the Twin Cities. A magistrate judge last week declined to sign off on a complaint charging Lemon and a judge ruled today that federal prosecutors can't seek the death penalty for Luigi Mangione, who's charged with killing a United Healthcare executive. Three pieces of news from the president and the administration. The Justice Department today began releasing its latest batch of documents related to its investigation of Jeffrey Epstein. It's more than 3 million pages of files with thousands of videos and photos. The Justice Department began the Epstein document dump last month after Congress in November passed a law mandating the release of the files. Also from the Justice Department, the FBI is leading an investigation into whether federal agents who fatally shot Alex Preddy in Minneapolis Fil violated his civil rights. Public outcry prompted the Justice Department to expand what had been a more limited probe. And President Trump, acting in his personal capacity, has sued the IRS and the Treasury Department. He says the agencies didn't do enough to stop a contractor from leaking his tax returns to The Press in 2019. The lawsuit seeks at least $10 billion from the US government that he runs. The White House, IRS and Treasury Department didn't respond to requests for comment. FOREIGN. The private credit boom on Wall street is raising some concerns for investors again. One of BlackRock's private credit funds surprised investors last week when it reported a $140 million loss and marked down the value of its holdings by 19%. The decline just highlights how hard it is to know how much these investments are worth, even as Wall street and the Trump administration are pushing to make products like these even, even more widely available to Main street investors. I'm joined now by Matt Wirtz, who covers credit for the Journal. Matt, why are these types of investments so hard to value?

[Matt Wirtz]

The short answer is in the name. They are private, so they're a corporate loan that BlackRock might make to a small or mid size manufacturer of like roof supplies, for example. And so these are loans that this fund makes to these companies, but there's no marketplace to trade them. And as a result of that, there's no clearly available price and it's up to the discretion of the fund's manager to determine what the value of the investment is. More and more corporate loans in this country have moved out of the banking system into these private credit funds, which are super hot and super lucrative for Wall street. But they are less transparent than stocks, bonds or even large corporate loans that banks make and then trade in the market.

[Alex Osoloff]

What does this mean for ordinary investors?

[Matt Wirtz]

What's noteworthy here is how quickly this fund changed its story on what these assets were worth. Just a couple months ago, they and some of the other investments were worth $140 million more and more. And these are companies that were in trouble for years that this fund in particular has already written down. BDCs are very widely held by individual investors.

[Alex Osoloff]

Matt, one second. Let me just tell listeners. BDCs are business development companies that typically make high interest loans to companies. And this BlackRock fund we're talking about is an example of one.

[Matt Wirtz]

They're viewed as a source of income. Investors in them are told you own secured loans backed by hard assets. These funds can drag out the write downs of their assets because there is this opacity. And so you as an investor may not know that you're sitting on some time bombs in your fund that can turn into a massive loss, as it did in this case.

[Alex Osoloff]

That was WSJ reporter Matt Wirtz. Thank you, Matt.

[Matt Wirtz]

Thank you.

[Alex Osoloff]

A spokesman for BlackRock declined to comment.

[Matt Wirtz]

Foreign.

[Alex Osoloff]

As we mentioned on this morning's show, President Trump has named his pick to lead the Federal Reserve. It's 55 year old Kevin Warsh. Wall street isn't sure what to make of Warsh yet. Many are optimistic that Warsh will preserve the Federal Reserve's independence, even as they're also concerned he might be far from the easy money kind of Fed chair that President Trump wants. The conflicting views were reflected today by falling stocks, a rallying dollar, and the worst day for gold and silver in more than four decades. Gold fell 11% and silver dropped 31%. Warsh still has to be confirmed by the Senate. And the government's criminal investigation into current Fed Chair Jerome Powell might complicate that. Republican Senator Thom Tillis of North Carolina said today that though he considers war a qualified nominee, he would oppose Warsh's confirmation until the Powell probe is resolved. Coming up, are you trying to eat more protein fast? Casual restaurant chains want to help you with that. That's after the break.

[Christopher Mims]

Hi, I'm Christopher Mims. And I'm Tim Higgins. We're the hosts of the Wall Street Journal's Bold Names podcast. On our show, we bring the bold name companies featured in the pages of the Wall Street Journal to life through real conversations with the people that lead them. If you're looking for more news and insights that bring you inside the C suite, consider becoming a subscriber to the Wall street journal. Visit subscribe WSJ.com Bold names to subscribe Now.

[Alex Osoloff]

With just hours to go, the Senate is grinding toward a vote later today to fund the government. If it passes the Senate, it still needs approval from the House, which isn't expected to return until Monday. That means at least a brief partial shutdown of the government is likely. Many Americans are obsessed with eating more protein. The government now recommends that you eat a whole lot more of it. And restaurant chains like Chipotle and Starbucks are changing up their marketing and their menus to emphasize it.

[News Reporter]

The new Turkey and ham Protein pocket.

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From Subway Fresh Turkey Black Forest introducing Chipotle's new high protein menu with real.

[Alex Osoloff]

Chicken grilled fresh New protein refreshers only at Dunkin'. The companies are hoping that extra protein can help bring in more diners. Market research firm Black Box Intelligence says restaurant traffic fell 1.9% last year. Kelly Clooney covers corporate news for the Journal and is here to tell us how protein became the new industry watchword. So, Kelly, I'm struck by the form that some of this protein stuff is taking. There's protein foam, protein pockets. What is the unifying element among these things?

[Kelly Cloonan]

Yeah, a Lot of these companies are really just trying to capitalize on consumers growing interest in protein. These protein offerings really in front of the gamut. It's a big variety. There's more traditional offerings like Chipotle, double or triple chicken or steak in their existing bowls. At the same time having like a standalone side of of chicken or steak that's new to their menu. Then we also have a lot more kind of creative options like Papa John's protein infused pizza dough or Dunkin and Starbucks high protein milk options for their lattes.

[Alex Osoloff]

So it sounds like some of the stuff that is on these menus is new, like the protein pizza dough and some of it is sort of like a repackaged version of what already was there. Like a cupful of chicken, right?

[Kelly Cloonan]

Yes, exactly. These aren't necessarily always new offerings. A lot of it is just putting more marketing dollars behind it and really putting these items in protein focused menus. It's not really like a high risk thing for these restaurants to try out. So in the case that it does resonate with people, it could really help sales and help traffic.

[Alex Osoloff]

Charging a premium for protein could help reinvigorate sales. But is there any indication the new menu items are increasing visits to restaurants?

[Kelly Cloonan]

Analysts are still waiting to see what that's going to look like. Starbucks was early to unveiling their protein focused offerings in the fall. They've said so far that awareness among consumers is still low. But in some cases their protein offerings are driving increased traffic and bringing some customers back for repeat visits. And people that I talk to seem pretty interested in the more value or oriented protein offerings. Chipotle's Chicken cup and Subway's protein pockets, those typically go for under $4. And a lot of consumers have been put off by high prices. So seeing protein options that are a little cheaper is something they're very interested in.

[Alex Osoloff]

That was WSJ reporter Kelly Cloonan. Thanks, Kelly.

[Kelly Cloonan]

Thanks so much. Great to be here.

[Alex Osoloff]

In Ukraine, President Volodymyr Zelensky said he supported the pause on strikes on energy infrastructure proposed by the US Russian strikes on Ukraine's power grid in recent weeks have left hundreds of thousands without power or consistent heat. While Ukraine has targeted Russia's oil refineries, an energy truce would be the first tangible result from the US Mediated push for peace in Ukraine. And Cuba is losing a key oil supplier, Mexico, after pressure from President Trump. Mexico had already paused its shipments there before the president yesterday issued an executive order for tariffs on any country that exports oil to Cuba. Cuba is in danger of running out of fuel, threatening economic collapse. The Journal has reported that the Trump administration is looking for ways to topple its government this year. And you can hear more about the push for regime change in Cuba on this weekend's episode of what's NEW Sunday. And speaking of oil today, Chevron and Exxon both reported their smallest annual profits since 2021 as a growing glut of crude has weighed on prices. President Trump wants Chevron, Exxon and other companies to rebuild Venezuela's oil industry. But Chevron said today that it's too early to determine the company's long term outlook on Venezuela. It's the only major US Oil company currently active in the country. And finally, tomorrow is the last day of January. And if you've been feeling like the month has been one crisis after another, well, I'd agree with that. Have a listen.

[News Reporter]

The US Staged a raid on Venezuela overnight that culminated in the capture of the country's president, Nicolas Maduro.

[Alex Osoloff]

The Department of Homeland Security said an ICE officer shot and killed a woman today. President Trump tells Iranian protesters that, quote, help is on its way.

[News Reporter]

Sweden, France and Germany are sending troops for military exercises in Greenland, with a.

[Alex Osoloff]

Decision on military apparently on pause. The US has turned to economic pressure on Iran. Framework of a future deal on Greenland.

[News Reporter]

Minneapolis reels after federal agents kill another US Citizen.

[Alex Osoloff]

The White House border czar says he's working on drawing down immigration officers in Minneapolis. So if the news cycle this year has you dizzy, you're not alone. WSJ Washington coverage chief Damian Poletta calls it the Washington whiplash. And it could come with consequences for the Trump administration.

[News Reporter]

When you have a crisis every five minutes, people start tuning it out because they have to live their lives. We're just a few weeks into this year and already we've seen so many events that were either precipitated by the White House or involved Washington in some way. And I think it's setting the tone for a really hectic and possibly quite confusing year ahead of the midterms. One of the reasons this is important is Americans like certainty, Americans like stability. There's a sense this could become a liability for the White House and Republicans.

[Alex Osoloff]

And, and that's what's news for this week. Tomorrow you can look out for our weekly markets wrap up. What's news in markets Then on Sunday, as we mentioned, we'll be talking about Cuba. And we'll be back with our regular show on Monday morning. Today's show is produced by Pierre Bienname with supervising producer Tali R. Bell. Michael Lavalle wrote our theme music. Jessica Fenton is our technical manager. Aisha El Mouslim is our development producer. Chris Zinsley is our deputy editor. And Falana Patterson is. Is the Wall Street Journal's head of news audio. I'm Alex Osala wishing you a relaxing end to this month. Thanks for listening.