BlackRock Slashes Private Loan Value From 100 To 0

Earlier this week, the panic quietly, or not so quietly, sweeping the private credit world, hit 11 when Blackstone's Private Credit Fund (BCRED, the world's largest with $82BN in AUM, was hit with a record 7.9% in redemptions, shocking Wall Street as the total number of permitted redemption was above the statutory maximum of 7%, which forced Blackstone's own employees to write $150 million worth of personal checks to make sure those hoping to pull their money didn't start a riot. 

Well, this morning the panic must have risen to 12 out of 10 when markets learned that that other "Black" fund, BlackRock, had slashed the value of a private loan to zero just three months after assessing it at 100 cents on the dollar, marking the second sudden wipeout to recently hit its private-credit division.