Blue Owl Capital Corporation Isn't Worth A Hoot
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(12min)Comments(3)SummaryBlue Owl Capital Corporation remains a 'sell' despite its 13.6% yield, given persistent underperformance versus the S&P 500.OBDC's heavy reliance on floating-rate debt exposes it to profitability declines as interest rates fall, with portfolio yield dropping from 11.9% (2023) to 9.5% (2025).Shareholder value faces dilution risk due to a 28% increase in shares outstanding, while NAV per share has slightly declined year-over-year.Recent liquidity maneuvers and related-party transactions amid private credit market stress raise concerns about transparency and long-term stability.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » design master/iStock via Getty Images High yield opportunities can be difficult to resist. Even though I myself don't care much about payouts to investors, even I acknowledge that if the yield is high enough, it can be difficult to say no to. Unfortunately, there This article was written byDaniel Jones36.89K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.