BlackRock CLO Fails Overcollateralization Test and Waves Fees
- Paul Mangione
- Nov 19
- 1 min read
November 19, 2025 - A BlackRock portfolio of private credit loans has performed poorly, prompting the money manager to waive some management fees.
The portfolio's value declined enough to breach an over-collateralization test in October, which was rectified by a fee deferral that included cash from the deal's riskiest tranches.
The performance of the portfolio raises questions about the outlook for the broader private credit market, which has shown signs of weakness despite being on track for another record year.
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