# Private Credit Opacity and Fed Leadership Shifts

**Podcast:** WSJ What’s News
**Published:** 2026-01-30

## Transcript

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Then you may strom the Berliner Stadtwerke, then the Berliner Stadtwerke invest here for Orthodox in a sauce.
Berliner Stadtwerke.
Good for dich.
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Former CNN anchor Don Lemon was arrested over a protest at a Twin Cities Church.
Plus, the private credit market is showing some cracks.
And so you as an investor may not know that you're sitting on some time bombs in your fund.
It's Friday, January 30th.
I'm Alex Ozola 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.
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 Mangioni, 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 three 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 Predy in Minneapolis 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 dollars from the U.S.
government that he runs.
The White House IRS and Treasury Department didn't respond to requests for investors again.
One of BlackRock's private credit funds surprised investors last week when it reported a 140 million dollar 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 more widely available to main street investors.
I'm joined now by Matt Wurtz, who covers credit for the journal.
Matt, why are these types of investments so hard to value?
The short answer is in the name.
They are private.
So they're a corporate loan that BlackRock might make to a uh 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.
What does this mean for ordinary investors?
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 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.
Matt, one 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.
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.
That was WSJ Reporter Matt Wurtz.
Thank you, Matt.
Thank you.
A spokesman for BlackRock declined to comment.
As we mentioned on this morning 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 Walsh 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 Tom Tillis of North Carolina said today that though he considers Warsh a qualified nominee, he would oppose Walsh'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.
That means at least a brief partial shutdown of the government is likely.
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?
Yeah, a lot of these companies are really just trying to capitalize on consumers' growing interest in protein.
These protein offerings really kind of run 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 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' Starbucks high protein milk options for their lattes.
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 cup full of chicken, right?
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.
Charging a premium for protein could help reinvigorate sales, but is there any indication the new menu items are increasing visits to restaurants?
Analysts are still waiting to see what that's gonna 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 the people that I talk to seem pretty interested in the more value-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.
That was WSJ Reporter Kelly Clunin.
Thanks, Kelly.
Thanks so much.
Great to be here.
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 U.S.
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.
Sweden, France, and Germany are sending troops for military exercises in Greenland.
With a decision on military action apparently on pause, the US has turned to economic pressure on Iran.
Framework of a future deal on Greenland.
Minneapolis reels after federal agents kill another U.S.
citizen.
The White House Border Tsar 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 Palletta calls it the Washington whiplash, and it could come with consequences for the Trump administration.
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 reasons this is important is Americans like certainty.
Americans like stability.
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