Blue Owl (OWL) Stock; Moves Up Slightly Following Loan Sales and BofA Support

TLDRs;

• Blue Owl shares rose modestly today after strategic loan sales and reassurance from Bank of America analysts.

• Bank of America analysts emphasized that private credit fears are overstated, boosting investor confidence in Blue Owl.

• The recent $1.4 billion loan sale demonstrates Blue Owl’s ability to maintain liquidity during market stress.

• Redemption requests and semi-liquid fund challenges continue to pose potential risks to Blue Owl’s valuations.

Shares of Blue Owl Capital (NYSE: OWL) saw a slight uptick Thursday, closing around $9.05 in midday trading after touching $9.14 earlier in the session. The modest rise comes as the private credit sector continues to navigate volatility, while Bank of America (BofA) offered reassurance that recent market anxiety over private-credit managers is largely overblown.

Investors have been closely monitoring Blue Owl due to its visibility among publicly listed firms exposed to private lending. Earlier this year, shares fell nearly 40%, with February marking the firm’s largest monthly decline to date. Short interest also reached record levels, hitting 14.1% of the company’s free float as of early March, reflecting heightened investor concern.

BofA’s analysis eases panic

Analysts at BofA, led by Craig Siegenthaler, emphasized that the current turbulence does not resemble the 2008 global financial crisis. According to their research, business development companies (BDCs) like Blue Owl operate with roughly two times leverage, a fraction of the levels seen before major bank collapses in 2008.

The bank reaffirmed its buy rating for Blue Owl, while also maintaining recommendations for Blackstone and KKR, and elevating Ares to a top pick.

Blue Owl Capital Inc., OWL

BofA’s guidance underscores that the market’s reaction is driven largely by short-term concerns and minor data points rather than fundamental weaknesses. “This is not a GFC repeat,” the note stated, signaling confidence in Blue Owl’s operational stability.

Loan sales demonstrate liquidity strategy

Earlier this year, Blue Owl executed a $1.4 billion loan sale from three of its funds, returning some capital to investors, reducing debt, and modifying how returns are distributed in Blue Owl Capital Corp II. The loans were sold at 99.7% of face value, indicating that internal valuations remain strong. Co-President Craig Packer clarified that the firm was not halting redemptions, but rather adopting a flexible approach to managing liquidity under market pressure.

The move has sparked differing interpretations among analysts. Truist’s Brian Finneran suggested the sale might reflect accelerated investor withdrawals, while Oppenheimer’s Mitchel Penn argued that the transaction showcased Blue Owl’s ability to unlock liquidity even during challenging market conditions.

Sector pressures persist

Despite the positive signals, risks remain. Semi-liquid funds, which allow only limited withdrawals, continue to face challenges in a market where redemption requests could rise. Illiquid loan portfolios and potential losses among software-backed borrowers could further affect valuations, fundraising, and access to credit lines.

According to Reuters, U.S. banks held roughly $925 billion in exposure to private credit and private equity as of mid-2025, highlighting the sector’s broader financial footprint.

Blue Owl currently oversees more than $307 billion in assets spanning credit, real estate, and strategic investments. Thursday’s modest gain, supported by BofA’s reassurance and the firm’s recent liquidity strategy, indicates that investors are cautiously optimistic but remain alert to ongoing sector risks.

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