Overview
- Financial Times reported that Glendon Capital alleged Blue Owl and peers understated loss rates and were sitting on larger losses than disclosed.
- Glendon criticized marks in Blue Owl Capital Corporation, citing higher end‑2025 valuations versus public market prices for related debts.
- Reuters said it could not immediately verify the FT report and noted that Blue Owl and Glendon did not provide immediate comment.
- Investors are bracing for more negative updates in the roughly $2 trillion private‑credit market, with New York‑based Blue Owl reporting over $300 billion in assets as of Dec. 31.
- Recent stress signals include Morgan Stanley limiting redemptions at a private‑credit fund and JPMorgan reducing the value of some loans to such funds, while market pressures have pushed Blue Owl shares to their lowest since October 2022 and its BDC’s price‑to‑book below 0.8, with broader financials under strain.