OWL - Blue Owl Capital: Misunderstood Pessimism With A Highly Attractive Yield
2024-06-23 08:30:00 ET
Summary
- Blue Owl BDC investors suffered near-term downside as the market possibly priced in a potentially more dovish Fed.
- A more challenging lending environment could also hamper OBDC's earnings growth trajectory.
- OBDC remains well-poised to navigate a higher-for-longer Fed.
- OBDC's market leadership positions it well to compete even as spreads could narrow further.
- I explain why OBDC's uptrend bias has remained intact, defended by a highly attractive dividend yield. Read on.
Blue Owl BDC Benefits From A Higher-For-Longer Fed
Blue Owl Capital Corporation ( OBDC ) investors suffered downward volatility over the past month, as OBDC lost all its gains for May 2024. OBDC topped in early June 2024, as the market likely reacted to a higher possibility of lower interest rates by the end of 2024. As a result, potential interest rate growth headwinds have likely impacted business development companies....
Blue Owl Capital: Misunderstood Pessimism With A Highly Attractive Yield