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00:02Blue Owl Capital sold $1.4 billion of loan assets from three private debt funds and
00:08permanently restricted withdrawals from its Blue Owl Capital Corporation II retail fund,
00:12according to CNBC.
00:14Shares fell nearly 6 percent.
00:16Most of the asset sale came from Blue Owl Capital Corporation II, a semi-liquid retail
00:21private credit fund that will stop quarterly redemptions, reviving concerns about stress
00:26in the private credit market.
00:27Dan Rasmussen of Verdad Capital referred to the sale as a canary in the coal mine and
00:32said the move signals that a private markets bubble may be beginning to burst.
00:36He warned that years of ultra-low rates pushed investors into riskier loans.
00:41Analysts said the move renewed debate over stress in the $3 trillion private credit market.
00:46Dividend yields among the eight largest S&P BDC index members reached up to 16 percent in
00:522025.
00:53Blue Owl did not respond to CNBC's request for comment.
00:56For all things, money, visit benzinga.com.
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