Stocks May Face Extended Winter of Discontent Beyond the Season, Along with BDC Investment Picks.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy OWL?
Source: Barron's
Current Sentiment: The present is marked by a sense of discontent and dissatisfaction.
Future Concerns: There is a prevailing anxiety about a potentially dystopian future.
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Analyst Views on OWL
Wall Street analysts forecast OWL stock price to rise
15 Analyst Rating
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 11.220
Low
18.00
Averages
21.13
High
28.00
Current: 11.220
Low
18.00
Averages
21.13
High
28.00
About OWL
Blue Owl Capital Inc. is an alternative asset management company. The Company deploys private capital across Credit, GP Strategic Capital and Real Estate platforms on behalf of institutional and private wealth clients. Its product platforms include Credit, GP Strategic Capital and Real Estate. Its credit products offer private financing solutions primarily to upper-middle-market companies. Its credit products are offered through a mix of business development companies, long-dated private funds, managed accounts and collateralized loan obligations. It is focused on acquiring equity stakes in or providing debt financing to private capital firms. Its Real Estate products are focused on acquiring triple net lease real estate occupied by investment-grade or creditworthy tenants. Its Real Estate products are offered through Permanent Capital vehicles, including its real estate investment trusts, and long-dated private funds. It offers asset management services to the insurance industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Blue Owl Capital Halts Redemptions, Sparking Market Concerns
- Redemption Halt Impact: On February 18, Blue Owl Capital suspended redemptions in its retail-oriented private credit vehicle, Blue Owl Capital Corp II, marking a significant stress test for the private credit market and shaking confidence in a $1.8 trillion sector.
- Asset-Liability Mismatch: The fund's promise of quarterly redemptions capped at 5% became untenable as concerns over software lending and AI disruptions surged, revealing an inherent mismatch between illiquid assets and retail fund liabilities, prompting investors to rush for redemptions at stated NAV.
- Market Reaction: Analysts downgraded Blue Owl's stock and slashed price targets, indicating heightened concerns over liquidity risks, with the episode serving as a structural revelation rather than a scandal, highlighting deeper issues within the private credit framework.
- Retail Investor Vulnerability: Retail investors, characterized by shorter time horizons and unpredictable liquidity needs, are more likely to react hastily to liquidity constraints, exacerbating market instability and underscoring the liquidity risks inherent in private credit investments.
See More
Stocks May Face Extended Winter of Discontent Beyond the Season, Along with BDC Investment Picks.
Current Sentiment: The present is marked by a sense of discontent and dissatisfaction.
Future Concerns: There is a prevailing anxiety about a potentially dystopian future.
See More
Feeling Tired or Headachy? You Might Be Doomscrolling BDC News
- Earnings Reports: Many business development companies reported their earnings over the past week.
- Investor Sentiment: The earnings reports did not provide any positive news for investors.
See More
AI Replacement of Labor Sparks Unemployment Crisis
- Unemployment Rate Surge Warning: Citrini Research's report predicts that the U.S. unemployment rate could exceed 10% by 2028, with weekly claims nearing half a million, highlighting the potential threat of AI replacing white-collar jobs and signaling significant economic shifts ahead.
- Market Panic Intensifies: Despite Nvidia's blowout earnings and optimistic guidance, its stock fell over 5%, indicating a shift in investor sentiment from euphoria to skepticism, as fears about the future economic landscape grow.
- Private Equity Pressure Mounts: Blue Owl Capital's restriction on redemptions and tightened liquidity terms reveal stress in the private equity sector, while MidCap Financial's dividend cut due to asset markdowns signals further erosion of market confidence.
- Accelerating Sector Rotation: Energy stocks have outperformed technology for 10 consecutive weeks, and value stocks have beaten growth by 12% in the first two months of 2026, suggesting a reevaluation of the AI arms race and a potential repricing of the entire economic hierarchy.
See More
Goldman Sachs Asset Management Navigates AI Disruption
- Redemption Rate Advantage: Goldman Sachs Asset Management reported a redemption rate of 3.5% for GS Credit, significantly lower than the over 5% average of its peers, indicating relative stability in the private credit market and bolstering investor confidence.
- Strong Inflows: As of December, inflows into Goldman Sachs Private Credit Corp were 11% above the year-to-date average, demonstrating robust demand for its products and potentially supporting future growth for the firm.
- AI Impact Assessment: Goldman disclosed that its exposure to enterprise software credit was approximately 15.5%, at the lower end of its peers, indicating a cautious investment strategy in light of potential AI threats aimed at minimizing risk.
- Technological Change Response: Goldman rolled out its internal framework to assess AI disruption risk in early 2025, reflecting its commitment to addressing technological changes and aiming to invest in businesses with structural advantages to navigate intensifying market competition.
See More
Wall Street Banking Selloff Intensifies Amid AI Economic Concerns
- Market Decline: Wall Street experienced a banking selloff on Friday, with the Nasdaq 100 down 0.6%, the S&P 500 falling 0.7%, the Dow Jones Industrial Average tumbling 1.3%, and the Russell 2000 declining 2.1%, indicating heightened concerns over the economic outlook.
- Tech Stocks Plummet: Nvidia Corp. (NASDAQ:NVDA) shares fell 2.8%, extending Thursday's 5.4% decline, heading towards its worst two-day drop since April, reflecting waning investor confidence in tech stocks amid economic uncertainties.
- Bitcoin Continues to Slide: Bitcoin (CRYPTO:BTC) dropped 2.6% to $65,000, marking its sixth consecutive weekly loss, which underscores the ongoing weakness in the cryptocurrency market as investors remain cautious.
- Commodity Market Fluctuations: Despite the stock market downturn, oil prices rose over 2% to above $66 per barrel, gold gained 1% to $5,235 per ounce, and silver rallied 6% to $93, indicating that investors are seeking safe-haven assets in a volatile market environment.
See More
Blue Owl Capital Halts Redemptions, Sparking Market Concerns
- Redemption Halt Impact: On February 18, Blue Owl Capital suspended redemptions in its retail-oriented private credit vehicle, Blue Owl Capital Corp II, marking a significant stress test for the private credit market and shaking confidence in a $1.8 trillion sector.
- Asset-Liability Mismatch: The fund's promise of quarterly redemptions capped at 5% became untenable as concerns over software lending and AI disruptions surged, revealing an inherent mismatch between illiquid assets and retail fund liabilities, prompting investors to rush for redemptions at stated NAV.
- Market Reaction: Analysts downgraded Blue Owl's stock and slashed price targets, indicating heightened concerns over liquidity risks, with the episode serving as a structural revelation rather than a scandal, highlighting deeper issues within the private credit framework.
- Retail Investor Vulnerability: Retail investors, characterized by shorter time horizons and unpredictable liquidity needs, are more likely to react hastily to liquidity constraints, exacerbating market instability and underscoring the liquidity risks inherent in private credit investments.
See More
Stocks May Face Extended Winter of Discontent Beyond the Season, Along with BDC Investment Picks.
Current Sentiment: The present is marked by a sense of discontent and dissatisfaction.
Future Concerns: There is a prevailing anxiety about a potentially dystopian future.
See More
Feeling Tired or Headachy? You Might Be Doomscrolling BDC News
- Earnings Reports: Many business development companies reported their earnings over the past week.
- Investor Sentiment: The earnings reports did not provide any positive news for investors.
See More
AI Replacement of Labor Sparks Unemployment Crisis
- Unemployment Rate Surge Warning: Citrini Research's report predicts that the U.S. unemployment rate could exceed 10% by 2028, with weekly claims nearing half a million, highlighting the potential threat of AI replacing white-collar jobs and signaling significant economic shifts ahead.
- Market Panic Intensifies: Despite Nvidia's blowout earnings and optimistic guidance, its stock fell over 5%, indicating a shift in investor sentiment from euphoria to skepticism, as fears about the future economic landscape grow.
- Private Equity Pressure Mounts: Blue Owl Capital's restriction on redemptions and tightened liquidity terms reveal stress in the private equity sector, while MidCap Financial's dividend cut due to asset markdowns signals further erosion of market confidence.
- Accelerating Sector Rotation: Energy stocks have outperformed technology for 10 consecutive weeks, and value stocks have beaten growth by 12% in the first two months of 2026, suggesting a reevaluation of the AI arms race and a potential repricing of the entire economic hierarchy.
See More
Goldman Sachs Asset Management Navigates AI Disruption
- Redemption Rate Advantage: Goldman Sachs Asset Management reported a redemption rate of 3.5% for GS Credit, significantly lower than the over 5% average of its peers, indicating relative stability in the private credit market and bolstering investor confidence.
- Strong Inflows: As of December, inflows into Goldman Sachs Private Credit Corp were 11% above the year-to-date average, demonstrating robust demand for its products and potentially supporting future growth for the firm.
- AI Impact Assessment: Goldman disclosed that its exposure to enterprise software credit was approximately 15.5%, at the lower end of its peers, indicating a cautious investment strategy in light of potential AI threats aimed at minimizing risk.
- Technological Change Response: Goldman rolled out its internal framework to assess AI disruption risk in early 2025, reflecting its commitment to addressing technological changes and aiming to invest in businesses with structural advantages to navigate intensifying market competition.
See More
Wall Street Banking Selloff Intensifies Amid AI Economic Concerns
- Market Decline: Wall Street experienced a banking selloff on Friday, with the Nasdaq 100 down 0.6%, the S&P 500 falling 0.7%, the Dow Jones Industrial Average tumbling 1.3%, and the Russell 2000 declining 2.1%, indicating heightened concerns over the economic outlook.
- Tech Stocks Plummet: Nvidia Corp. (NASDAQ:NVDA) shares fell 2.8%, extending Thursday's 5.4% decline, heading towards its worst two-day drop since April, reflecting waning investor confidence in tech stocks amid economic uncertainties.
- Bitcoin Continues to Slide: Bitcoin (CRYPTO:BTC) dropped 2.6% to $65,000, marking its sixth consecutive weekly loss, which underscores the ongoing weakness in the cryptocurrency market as investors remain cautious.
- Commodity Market Fluctuations: Despite the stock market downturn, oil prices rose over 2% to above $66 per barrel, gold gained 1% to $5,235 per ounce, and silver rallied 6% to $93, indicating that investors are seeking safe-haven assets in a volatile market environment.
See More
