It’s the End of the Globalist Banking Cartel!
A MAJOR EVENT HAS JUST OCCURRED:
BlackRock has just blocked fund withdrawals from its investors.
The world's largest asset manager announces the news: no, you cannot recover your money. An unprecedented situation.
BlackRock's private credit fund, valued at $26 billion, recorded $1.2 billion in withdrawal requests this quarter.
Investors wanted to recover 9.3% of their investment. BlackRock refused, capping withdrawals at 5%.
After paying out $620 million, the rest was blocked. This means that nearly HALF of the investors wanting to withdraw their money were unable to do so. And BlackRock is not an isolated case.
Blackstone's similar fund recorded a record number of redemption requests, amounting to 7.9%. Blackstone had to raise its withdrawal cap and inject $400 million from its own funds to meet the demand.
Blue Owl has simply stopped honoring redemption requests. They replaced them with IOUs.
BLK has dropped 5%. KKR, Carlyle, Apollo, Ares, Blue Owl, and TPG have all fallen 5 to 6% in the same direction.
The entire private credit sector collapsed in a single day.
These funds provide illiquid loans, meaning loans that are difficult to sell quickly. Thus, when too many investors want to withdraw simultaneously, the fund lacks the necessary liquidity to reimburse everyone.
BlackRock has also just written off a separate $25 million loan to zero. It was valued at its nominal value just three months ago.
Gone overnight. Bill Eigen from JPMorgan summed up the situation aptly: "Bad news often arrives all at once. The opacity and leverage in the sector are concerning." This is a sector weighing $1.8 trillion.
The option of a rate cut is off the table. When the world's largest funds announce to investors that they'll never see their money again… It's a VERY IMPORTANT red flag.