Two Blue Owl funds cut dividends amid private credit stress
Updated
Updated · MarketWatch · May 7
Two Blue Owl funds cut dividends amid private credit stress
13 articles · Updated · MarketWatch · May 7
Blue Owl Capital Corp. and Blue Owl Technology Finance Corp., managing $15.3 billion and $14.1 billion, lowered quarterly payouts, while the tech fund sold half its SpaceX stake for $117 million.
OBDC cut its dividend to 31 cents from 36 cents and OTF to 40 cents from 45 cents; both funds' net asset values fell and traded at steep discounts.
Blue Owl cited strong credit performance but a tougher earnings and AI environment, as investors pull back from private credit exposure; the manager's shares are down 29% this year.
With buybacks signaling confidence, are Blue Owl's dividend cuts a panic move or a prudent strategy?
As corporate loans falter, is asset-backed finance the new safe haven in private credit?
Is private credit's tech 'gold rush' over now that AI is disrupting software?