Blue Owl Capital

OBDC

Market cap $5.64B

First, it was "First Brands" risk; now it's "AI software" risk. Market narratives shift monthly, but the cash keeps flowing. Ares Capital quality: Non-accruals remain low at 1.2% of fair value, and the stock is trading below its $19.94 NAV – a level where we are enthusiastic buyers. Blue Owl sold a loan slice to private institutions at 99.7% of par, proving the public market's discount is completely unjustified.

The business development company, or BDC, sector faces aggressive bearish sentiment, with the market pricing in severe SaaS credit risks. Currently, we are definitely in a cyclical low, which could be the right time to buy for patient and long-term investors. However, many investors (especially conservative ones and retirees) want to remain on the sidelines and jump in back when things become less volatile.

System-wide BDC dividend cuts are highly likely as base dividend coverage averages 99% and growth is constrained. As a result, many BDC investors have decided to sit on the sidelines until the expected dividend cuts materialize. The idea is that a cut will lead to a negative share price reaction and thus provide a better opportunity to buy at a bargain price.

There are multiple risks for your BDC investments now and three that specifically create risk for certain BDCs. Business development companies offer high yields but carry significant, often misunderstood risks, especially in falling interest rate environments. Volatile interest rates can damage BDC profitability and distributable income, causing dividend cuts and share price declines.

This Major Market Rotation Just Handed Dividend Investors A Huge Gift

Because of Blue Owl, concerns over private BDCs have spilled over to push down prices of publicly traded BDCs — many of which trade at large discounts to their reported asset valuations.

Blue Owl Capital Corporation (OBDC) Q4 2025 Earnings Call Transcript

OBDC's Q4 EPS beat estimates as investment income climbs, but higher expenses and a YoY profit drop temper the upbeat quarter.

Although the revenue and EPS for Blue Owl Capital Corporation (OBDC) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Blue Owl Capital Corporation (OBDC) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.47 per share a year ago.