Brendan McDermid | Reuters
The latest tremor in the private credit world involved a deal that should’ve been reassuring to markets.
Blue Owl , a direct lender specializing in loans to the software industry, said Wednesday it had sold $1.4 billion of its loans to institutional investors at 99.7% of par value.
That means sophisticated players scrutinized the loans and the companies involved and felt comfortable paying nearly full price for the debt, a message that Blue Owl co-President Craig Packer sought to convey in interviews several times this week.
But instead of calming markets, it sent shares of Blue Owl and other alternative asset managers diving on fears of what could follow. That’s because as part of the asset sale, Blue Owl announced it was replacing voluntary quarterly redemptions with mandated
Blue Owl software lending triggers another quake in private credit
