Blue Owl Capital Corporation: 3 Pressures Mounting And How To Play It
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Roberts Berzins, CFA14.52K FollowersFollow5ShareSavePlay(11min)CommentsSummaryBlue Owl Capital trades at a ~25% discount to NAV, reflecting an overly pessimistic credit loss scenario.The current P/NAV implies an 11% loan book default with zero recovery, far exceeding historical loss rates.OBDC fundamentals remain stronger than peers like FSK and TCPC, with no signs of permanent value impairment.However, recent data points may limit near-term relief rally potential.In the article, I detail why I wouldn't expect a major recovery in the near term (but rather an additional leg down). gremlin/E+ via Getty Images In February 2026, I issued a buy rating on Blue Owl Capital (OBDC). The main driver for my bullish view was a combination of a ~20% discount to NAV and solid fundamentals. Granted, the discount mightThis article was written byRoberts Berzins, CFA14.52K FollowersFollowRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.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.