Shares of alternative asset managers tumbled on Thursday after Blue Owl restricted withdrawals from one of its retail-focused private credit funds, a fresh blow to a sector that’s faced heightened scrutiny in recent weeks. https://t.co/sswOZBZImh ...

Financial Data and Key Metrics Changes - In Q4 2025, adjusted net investment income (NII) per share was $0.36, consistent with the previous quarter, resulting in a return on equity (ROE) of 9.7% [11][22] - Net asset value (NAV) per share decreased to $14.81 from $14.89, primarily due to write-downs on a few watchlist names, partially offset by share repurchases [11][24] - The company repurchased $148 million of stock, the largest repurchase in its history, which was accretive to NAV per share by approximately $0.05 [10][24] Business Line Data and Key Metrics Changes - OBDC had fundings of $820 million against $1.4 billion of repayments, resulting in lower net leverage at 1.19 times [14][15] - The portfolio is broadly diversified across 30 industries, with average position sizes of approximately 40 basis points [16] - Revenue and EBITDA growth for borrowers in the software sector was 10% and 16% respectively in Q4, outpacing other sectors [17] Market Data and Key Metrics Changes - The company executed asset sales totaling $1.4 billion, including $400 million from OBDC, at book value and an average price of 99.7, which is a strong endorsement of its valuation process [8][9] - Interest coverage ratios remained healthy at approximately 2 times, with a non-accrual rate decreasing to 1.1% at fair value [18][19] Company Strategy and Development Direction - The company terminated the proposed merger with OBDC II and opted for a significant asset sale to provide liquidity to shareholders [6][7] - The focus remains on disciplined capital allocation, with a strategy of buy and hold lending, while also being opportunistic in asset sales [10][9] - The company aims to maintain a strong credit profile and has received a Moody's upgrade to Baa2, reflecting its solid portfolio and liability management [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's credit quality, stating that losses remain low and borrower fundamentals are strong [27][29] - The company anticipates that lower base rates and tighter spreads will impact future earnings, but does not expect broad-based credit issues [27][29] - Management highlighted the importance of maintaining a stable dividend while evaluating the impact of the current rate environment on earnings [29][90] Other Important Information - The board declared a first-quarter base dividend of $0.37, to be paid on April 15, 2026 [23] - The company has authorized a new share repurchase program of up to $300 million, replacing the previous $200 million plan [24] Q&A Session Summary Question: Is OBDC II halting redemptions permanently? - Management clarified that they are not halting redemptions but are accelerating them, returning 30% of capital at book value to investors [34][35] Question: What is the most accretive use of capital today? - Management indicated that they are evaluating both stock buybacks and capital deployment into the market, given the stock price is trading below book value [40][42] Question: What is the appetite for new software loan purchases? - Management expressed confidence in their ability to differentiate between resilient and vulnerable software businesses, indicating a cautious approach to new investments in the sector [68][70] Question: What was the weighted average spread of the assets sold? - The weighted average spread of the sold portfolio was just over 500 basis points, consistent with the broader portfolio [75] Question: How does the mark received compare with previous fair value marks? - Management stated that the assets were sold at their marks, which have been valued close to par, validating their valuation process [87][88]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted net investment income (NII) per share was $0.36, consistent with the previous quarter, resulting in a return on equity (ROE) of 9.7% [10] - Net asset value (NAV) per share decreased to $14.81 from $14.89 in the prior quarter, primarily due to write-downs on a few watchlist names, partially offset by share repurchases [21][22] - The company repurchased $148 million of stock, the largest repurchase in its history, which was accretive to NAV per share by approximately $0.05 [22] Business Line Data and Key Metrics Changes - OBDC had fundings of $820 million against $1.4 billion of repayments, resulting in lower net leverage at 1.19 times [13] - The company executed a sale of a portfolio of assets totaling $1.4 billion, including $400 million from OBDC, at book value, reflecting strong demand from institutional investors [6][9] Market Data and Key Metrics Changes - The company reported that interest coverage ratios remain healthy at approximately 2 times, with a non-accrual rate decreasing to 1.1% at fair value [17][18] - Revenue and EBITDA growth across the portfolio accelerated in the second half of the year, with overall revenue and EBITDA increasing 8% and 11% year-over-year in Q4 [16][17] Company Strategy and Development Direction - The company plans to continue its buy-and-hold lending philosophy while optimizing its capital structure to reduce costs and enhance flexibility [8][11] - The recent asset sales are seen as a strategic move to provide liquidity to shareholders and improve portfolio diversity, while also positioning the company to capitalize on attractive risk-adjusted opportunities [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality and resilience of the portfolio, despite anticipated impacts from lower base rates and tighter spreads on new and repriced assets [27][28] - The company does not expect broad-based credit issues in its portfolio, contrasting with market skepticism reflected in stock prices [28][29] Other Important Information - The board declared a first-quarter base dividend of $0.37, to be paid on April 15, 2026, supported by healthy spillover income of $0.36 per share [21][22] - The company received a Moody's upgrade to Baa2, reflecting strong portfolio and liability management capabilities [24][25] Q&A Session Summary Question: Is OBDC II halting redemptions permanently? - Management clarified that they are not halting redemptions but are accelerating the return of capital to investors, with a 30% distribution planned [32][33] Question: What is the most accretive use of capital today? - Management indicated that they are evaluating capital deployment opportunities while also considering stock buybacks due to the stock trading below book value [37][40] Question: What is the appetite for new software loan purchases? - Management expressed confidence in their software investments and indicated a discriminating approach to new purchases, expecting the software percentage in the portfolio to modestly decline [66][68] Question: How does the mark received on the asset sale compare with previous fair value marks? - Management stated that the assets were sold at their marks, consistent with previous valuations, reinforcing the integrity of their valuation process [82][83] Question: What considerations will the board take into account for setting the common dividend going forward? - Management noted that the board will evaluate earnings, credit performance, and market conditions when discussing future dividends, maintaining a stable base dividend approach [87][89]

Core Insights - BondBloxx Investment Management's BondBloxx Private Credit CLO ETF (PCMM) was awarded "Newcomer Fixed Income ETF of the Year" at the 2026 With Intelligence Mutual Fund & ETF Awards, highlighting its innovative approach in the fixed income market [1][2] Group 1: Product and Market Position - PCMM offers investors access to private credit, specifically targeting loans of privately owned "middle market" companies, which are significant contributors to the U.S. economy [3] - The ETF's diversified holdings aim to mitigate risks associated with specific companies, sectors, and private credit managers, reflecting BondBloxx's commitment to enhancing access to previously hard-to-reach segments of the fixed income market [3] Group 2: Recognition and Awards - BondBloxx has received multiple industry accolades, including Best International Fixed Income ETF Issuer in the 2025 ETF Express Awards and Best Fixed Income Asset Manager at the 2025 WealthManagement.com Industry Awards [5] - The firm, along with its communications partner Craft & Capital, was also recognized with the "PR Campaign of the Year" award, underscoring its strategic communications efforts [4]

Three months after Blue Owl Capital shelved a merger between two private credit funds, it has found a different way to provide investors with promised liquidity – selling loans https://t.co/P3vJlvpvjT ...

morpho curator fees went from $10k/week to $200k/week in 12 months. apollo buying 9% governance isn't about yield farming. $733b credit manager wants to route their own private credit deals through the protocol and capture the fee switch when it goes live. they're not investing in defi. they're trying to own the rails. ...

Core Viewpoint - XAI Octagon Floating Rate & Alternative Income Trust plans to host a Quarterly Webinar on March 4, 2026, focusing on its investment strategies and performance [1] Group 1: Webinar Details - The webinar will be moderated by Kevin Davis, Managing Director at XA Investments, featuring Kimberly Flynn, President at XAI, and Lauren Law, Senior Portfolio Manager at Octagon Credit Investors [1] - Participants can join via web or telephone, with specific dial-in numbers provided for different locations [2] - A replay of the webinar will be available in the Knowledge Bank section of the XAI Investments website [2] Group 2: Trust Overview - The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT" [3] - The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, primarily through investments in private credit markets [3] - Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments [3] Group 3: Company Background - XA Investments LLC, founded in 2016, serves as the investment adviser for multiple closed-end funds, including the XAI Octagon Floating Rate & Alternative Income Trust [4] - XAI provides investment advisory services, fund structuring, and consulting services focused on registered closed-end funds [4] - XMS Capital Partners, established in 2006, is a global financial services firm providing M&A, corporate advisory, and asset management services [5] Group 4: Sub-Adviser Information - Octagon Credit Investors, serving as the Trust's investment sub-adviser, manages a $33.2 billion portfolio focused on below-investment grade corporate credit [6] - The firm specializes in leveraged loans, high yield bonds, and structured credit investments, employing fundamental credit analysis and active portfolio management [6] - Octagon's investment philosophy emphasizes dynamic internal communication to manage portfolio risk and aims to generate attractive risk-adjusted returns [6]

Bain Capital and UBS are lending a combined $382 million to an Australian health-equipment manufacturer Aidacare, sources say, in the latest example of private credit being used to help finance stakeholder returns https://t.co/BneV9EZwr1 ...

Bank of Ireland Group is withdrawing from the US market for leveraged acquisition financings as private credit has started to chip away at fees historically collected by traditional banks. https://t.co/xtTElQzc9e ...

Market Overview - Investor sentiment is currently weighed down by concerns over AI's potential impact on various industries, leading to continued selling pressure in the markets, particularly in technology and software sectors [3][4][9] - The Dow is down 180 points, and the S&P 500 has decreased by 0.75% year-to-date, while the NASDAQ is down 4% [3][5] - Despite the negative sentiment, the S&P 500 remains near record levels, indicating that the market is not far off from its highs [4] Company Earnings and Performance - Walmart is set to report its fourth-quarter earnings, with expectations of strong performance following a successful holiday season, projecting same-store sales growth of around 4.5% [90][93] - Concerns exist regarding future guidance, particularly in light of weak consumer sentiment affecting purchasing patterns, as noted by General Mills [95][98] - Dutch Bros plans to aggressively expand, aiming to open at least 181 stores by 2026 and reach 2,029 shops by 2029, despite shares falling over 30% in the past year due to concerns about demand and costs [33][34] Technology Sector Insights - The software sector is experiencing significant selling pressure, with many stocks underperforming, although some companies, particularly those with usage-based models, may thrive in an AI-driven environment [26][31] - Companies like Micron are facing pressure despite ongoing demand for memory chips, indicating a disconnect between market sentiment and actual business fundamentals [6][7] - The private credit market is showing signs of distress, with over 15% of US leveraged technology loans marked at distressed levels, raising concerns about the overall health of the credit market [9][12] Analyst Ratings and Market Predictions - Morgan Stanley has named Citigroup as a top pick among large US lenders, raising its price target to $152, indicating confidence in the bank's performance [72] - Deutsche Bank has lowered its price target for DraftKings to $26, citing pressures from increased promotions and slowing growth [73] - True Securities upgraded Shopify to a buy rating, highlighting its recent growth and long-term drivers, raising the price target to $150 [75]