Blue Owl Anxiety Rattles $1.8 Trillion Private Credit Market
Market Intelligence Analysis
AI-PoweredThe private credit market is experiencing anxiety due to Blue Owl's permanent closure of a tech-focused fund, causing concerns about overspending on AI and lending standards, reminiscent of the 2008 financial crisis.
Market impact analysis based on bearish sentiment with 90% confidence.
Article Context
Worry in the private credit market continued Monday after Blue Owl last week permanently closed one of its tech-focused funds — preventing investors from withdrawing their cash every three months as they’d previously been allowed. The firm began selling assets to return investor capital. It’s the latest sign of tumult in a $1.8 trillion market stricken with worry about overspending on artificial intelligence, the technology’s disruptive power and lending standards more broadly. And it’s evoking comparisons to the run-up to the 2008 financial crisis. Bloomberg News Senior Editor for Credit James Crombie joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Emily Graffeo. (Source: Bloomberg)
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