Owl Rock Capital, Q3 2026 Earnings Call Transcript

Blue Owl Capital Corporation reported third-quarter earnings above its base dividend, a modest increase in NAV and no new borrowers entering non-accrual. Management sees direct-lending conditions stabilizing: wider spreads are flowing into new investments, while higher interest rates are expected to support earnings as floating-rate loans reset. It expects earnings to improve in coming quarters, with the dividend well-supported. Borrower performance remained solid, though deal activity is below historical levels; the company says its existing portfolio offers refinancing and add-on opportunities at more attractive spreads. Key risks include credit selection and a possible reversal in spreads. Management says credit quality is strong, liquidity ample and leverage within its target range, while continuing to balance share buybacks against new investments.