Apr. 2 at 4:35 PM
$OWL $OTF $OBDC The bounce back on
$OWL and all the BDCs now heading higher feels like the bottom may be in for this fear and loathing debacle. If you read the press release on
$OWL the numbers were miniscule but the reaction was brutal. Blue Owl Technology Income's
$52M outflows represent less than 2% of its ~
$3B net asset value. Similarly, OCIC's 5% redemptions represent less than 1% of the fund's NAV.
This has been an interesting manufactured run on these funds. The top Mag 7 BDCs are well managed, have excellent balance sheets and solid investments. The problem is they loan money to a private business the same way the bank does for your mortgage. Even during the GFC, banks did not go to their reputable homeowners and demand to be paid back. The fear has been snowballing with every media regurgitation of the same points about software exposure, bad loans, non payments by clients etc. So the funds only choices are to give up their working capital or gate the withdrawals.