LIVE MARKETS-Short sellers crowd into Blue Owl as private credit woes mount
BlackRock, Inc. BLK | 0.00 | |
NVIDIA Corporation NVDA | 0.00 | |
Blue Owl Capital OWL | 0.00 | |
Goldman Sachs Group, Inc. GS | 0.00 | |
Tesla Motors, Inc. TSLA | 0.00 |
Adds blog entry
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
SHORT SELLERS CROWD INTO BLUE OWL AS PRIVATE CREDIT WOES MOUNT
Short sellers are increasingly targeting Blue Owl Capital OWL.N, which has emerged as a poster child for the private credit jitters roiling markets this year.
Short interest in the firm has more than doubled to $1.3 billion from about $600 million a year ago, according to S3 Partners.
The surge reflects a sharp deterioration in Blue Owl’s long–short positioning, shifting from a long-dominated profile to what is now effectively battleground territory, said S3’s Matthew Unterman.
“This shift reflects a meaningful erosion in long-side backing and a material increase in bearish conviction. Active longs now only modestly exceed active shorts, with the margin narrowing considerably,” Unterman writes.
Investor sentiment toward private credit has weakened in recent months, as concerns mount over loosening lending standards and the potential for artificial intelligence to disrupt the software sector—a key area of exposure for many funds.
Blue Owl’s shares have fallen 35% year-to-date, while new investments in its largest retail-focused credit fund dropped 95%, according to a recent regulatory filing.
“Short interest has also risen by 100 million shares to 20% of the float and has remained elevated despite sustained price weakness,” Unterman adds. “The lack of any short covering reinforces the battleground dynamic.”
(Chibuike Oguh)
*****
EARLIER ON LIVE MARKETS:
THE HEAT IS ON: PPI SURGES, MORTGAGE RATES TICK HIGHER CLICK HERE
WALL STREET COOLS AFTER ANOTHER HOT INFLATION REPORT CLICK HERE
AI VS. SECURITY: CYBERATTACKS SURGE, LOSSES HIT $300 BILLION CLICK HERE
TRUMP'S CHINA TRIP COULD HAVE CONSEQUENCES FOR EUROPE CLICK HERE
GOLDMAN SACHS' VIEW ON BRITISH MARKETS CLICK HERE
ONE BILLION BARRELS LOST, BUT IT COULD HAVE BEEN WORSE CLICK HERE
STRONG START FOR EUROPE AS TRUMP AND CO. HEAD TO CHINA CLICK HERE
EUROPE BEFORE THE BELL: FUTURES SIGNAL A REBOUND CLICK HERE
LOCKED IN A STALEMATE WITH IRAN, TRUMP HEADS TO CHINA CLICK HERE