Moody's cuts outlook on Blue Owl fund to negative over surge in redemption requests

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Moody’s Ratings has cut its outlook on Blue Owl’s $36 billion Credit Income Corp (OCIC) fund to negative from stable due to “significantly higher” redemption requests in the first quarter compared to its peers. The ratings agency highlighted that a majority of these redemption requests came from a limited number of investors, indicating concentration in the equity holder base. While Blue Owl plans to fulfill only 5% of the 21.9% of shares requested for withdrawal, Moody’s expects elevated redemptions to continue and inflows to slow, impacting the fund’s capital and liquidity.

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