Five major developments in the credit crisis/bust. BlackRock, JP Morgan, Blue Owl, Apollo and another big run on a big fund. Private credit didn&#x27;t go anywhere, the situation keeps escalating and each one of these represents more significant confirmation of the shift toward toxic waste status. From asset valuations to more losses at big names, the behavior has radically changed. Eurodollar University Money &amp; Macro Analysis Gundlach Warns Investors Will Lose Money on Private Credit https://finance.yahoo.com/markets/stocks/articles/gundlach-warns-investors-lose-money-200041360.html BlackRock Private Credit Fund Cuts Asset Value on Markdowns https://www.bloomberg.com/news/articles/2026-05-07/blackrock-private-debt-fund-cuts-asset-value-on-loan-markdowns JPMorgan-Led Group Eyes $500 Million Loss on Qualtrics Debt https://www.bloomberg.com/news/articles/2026-05-06/jpmorgan-led-group-eyes-500-million-loss-on-qualtrics-debt Blue Owl adviser sued over allegedly inflating fund values, charging excessive fees https://www.reuters.com/legal/litigation/blue-owl-adviser-sued-over-allegedly-inflating-fund-values-charging-excessive-2026-04-28/ Apollo CEO Rowan warns of market correction, slams ‘egregious’ practices at rival insurers https://www.cnbc.com/2026/05/06/apollo-ceo-rowan-market-correction-rival-insurers.html Apollo to Give Investors Daily Pricing on Private Credit By September https://www.wsj.com/finance/investing/apollo-to-give-investors-daily-pricing-on-private-credit-by-september-44a2c84b $10 Billion Golub Fund Caps Outflows After Requests for 8.5% https://www.bloomberg.com/news/articles/2026-05-07/-10-billion-golub-fund-caps-outflows-after-requests-for-8-5

All Hell Breaks Loose: BlackRock, JP Morgan, Blue Owl, OpenAI

Eurodollar University

# Full Transcript

**Podcast:** Eurodollar University

## Participants

- **Jeff Snider** (None)

## Transcript

All right, did all hell just break loose or what? We've got several top tier stories here to go over in the private credit bust, crisis, whatever you want to call it. We've got BlackRock cutting that asset value. We've got JP Morgan losing money. We've got Blue Owl, which may be one of the biggest things that we're going to see here. And I'm going to forget the rest of them. Let's get to the list here.

Like I said, there is several top tier things going on in private credit right now that's being obscured by events other way. I mean, you know, the guy from Deutsche Bank, Tarman, he was right. If it wasn't for the Iran conflict, this stuff would be all over the financial media and it really should be. So let's get what we got here. Like I said, top tier stuff, starting with BlackRock cutting the net asset value on its BDC yet again by 5%. So the losses are still showing up.

JP Morgan had a hung deal over a software company, loans stuck on their balance sheet. Now it's looking at, you know, getting some price discovery here, but also discovering something about the marketplace. That's a big one that just took place. Blue Owl, this is an undervalued one or at least an understated one because if what they find out in the lawsuit and why they're being sued ends up being proven and even established a little bit, the results are going to be absolutely catastrophic for private credit, maybe even a lot more besides that.

We've got Apollo here. I went over a couple of these yesterday or a couple of days ago. There's another one here that also fits with the overall theme. So we'll get to three pieces update with Apollo. Another big credit fund, private credit, about $10 billion is seeing massive amount of withdrawal. So the hedge fund investor, really institution, that's the big part of this.

The institutional withdrawal wave that started, you know, earlier this year is still ongoing, even after a lot of this private credit stuff seems to have disappeared from the headlines for a couple of reasons. The Iran conflict being one, but also the stock market. What ends up happening before we get started and going over the details, what ends up happening is people think when the stock market is up, none of this stuff matters.

It's, you know, stocks hit record high and we're told that the stock market is the preeminent discounting mechanism for all financial macroeconomic information. Therefore, if stocks are at all time high, then none of this stuff is, this is all just academic crap. But I remind you a couple of times, I mean, look, the stock market hit a record high. It was rocking record highs in October 2007, which is already three months after the, or two months after the worst financial crisis, really not monetary crisis.

The worst monetary crisis we've seen since the Great Depression had already happened. I'm not making that comparison. Wha...

All Hell Breaks Loose: BlackRock, JP Morgan, Blue Owl, OpenAI

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All Hell Breaks Loose: BlackRock, JP Morgan, Blue Owl, OpenAI

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.