10-12% Yields Trading For Pennies On The Dollar

2026-01-30 07:05:00 ET

Private credit is being widely painted as a bubble that is about to burst . Headlines have emphasized isolated defaults and painted it as though they are cockroaches that are evidence of many more defaults to come, with JPMorgan ( JPM ) CEO Jamie Dimon even insinuating as much. Additionally, questions have been raised about liquidity being made available to various funds and about the transparency of marking the loans in private credit funds. As a result, many BDCs ( BIZD ), including highly reputable ones like Blue Owl Capital Corporation ( OBDC ) and Blue Owl Technology Income Corp. ( OTF ), have been priced down to steep discounts to net asset value in spite of their strong underlying performance. Additionally, alternative asset managers that have significant exposure to private credit, including the likes of Blackstone ( BX ), Ares Management ( ARES ), Apollo Global Management ( APO ), and Blue Owl Capital ( OWL ), have all been put in the penalty box as well....

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