Pimco has purchased all of the $400m (£295m) of bonds issued by Blue Owl Capital for its private credit fund on Monday (13 April).
The bonds, which are set to mature in 2028, were issued by the firm’s listed company Blue Owl Capital Corp (OBDC), and were offered at a 6.5 per cent yield.
The news that Pimco has bought the bonds was first reported by Bloomberg and has since been verified by Alternative Credit Investor.
According to Bloomberg, Trace data showed that since the sale, one secondary market trade of $5m has occurred.
Blue Owl’s business development companies, and the wider BDC sector, have come under scrutiny recently following a surge in redemption requests which, in turn, has prompted several ratings downgrades.
Read more: Pimco: Secondary trading in private assets may risk illiquidity premium
Shareholders in the Blue Owl Credit Income Corp (OCIC) fund asked to withdraw 21.9 per cent of shares in the three months to 31 March, according to a filing, while investors in the smaller Blue Owl Technology Income Corp (OTIC) sought to redeem 40.7 per cent of shares.
Blue Owl has since sought to allay fears, issuing a statement on LinkedIn earlier this month attributing the withdrawal requests to “heightened negative sentiment” rather than the vehicles’ performance.
Other private credit investors, including Blackstone, Ares and KKR have also received a surge in redemption requests amid mounting concerns among investors about the disruptive impact of AI on the software sector. Many private credit funds are exposed to software companies, which have experienced share price volatility amid the perceived threat posed by AI.
Pimco and Blue Owl have been contacted by Alternative Credit Investor for comment.
Read more: Private credit weathers scrutiny as managers reject crisis narrative
