Blue Owl BDC’s CEO Craig Packer reassures markets, selling $1.4 billion of loans at 99.7% of par value to institutional investors. However, replacing voluntary redemptions with mandated “capital distributions” sparks fears of forced sales of quality assets. Blue Owl down over 50% in past year amid tech selloff and liquidity demands.

Private credit world shaken as Blue Owl sells loans to software industry, sparking fears of market volatility. Blue Owl insists loans were scrutinized by sophisticated players and investors will get 30% back by March 31. Concerns rise over illiquid assets meeting demands for liquidity in private credit sector.

Blue Owl faces skepticism over loans to software firms, with concerns rising over cherry-picking of loans sold to investors. Despite efforts to calm markets, Blue Owl at center of private credit loan concerns. Majority of loans are to software companies, with executives emphasizing confidence in software industry and loan security.

Read more at CNBC: Blue Owl software lending triggers another quake in private credit