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At least one structured note tied to Blue Owl Capital Inc. is being quoted at just 47 cents on the dollar after the asset manager restricted withdrawals from one of its retail-focused private funds.
The security, which was issued by a subsidiary of Citigroup Inc., is due later this year. Another 2028 note that was offered by a unit of JPMorgan Chase & Co. is quoted at about 68 cents, while a Bank of Nova Scotia instrument partly tied to Blue Owl was at 87 cents, according to data compiled by Bloomberg.

Structured notes are bonds with embedded derivatives, giving holders exposure to a number of assets, from stock prices to currencies and interest rates. There’s generally no secondary market for those bonds, with prices only coming from the banks that arranged them.

Blue Owl’s stock fell as much as 9.4% in New York on Thursday. The notes were already quoted below face value prior to the announcement about the withdrawal restrictions.The depressed prices underscore the pressure on Blue Owl, whose stock has already fallen by about a quarter this year.

The plan to limit withdrawals signaled a reversal from a previous arrangement to resume redemptions this quarter.

Today's show features:

Olivia Fishlow, Bloomberg News Leveraged Finance Reporter, on Blue Owl Drops as Redemption Halt Stirs Private Credit Concern
Dylan Field, Figma CEO, on earnings and collaboration with Anthropic
Kate Gulliver, Chief Financial Officer of Wayfair, on quarterly earnings and the health of the American consumer
Matthew O’Neill and Perri Peltz, co-producers & co-directors of ‘Can’t Look Away: The Case Against Social Media, on Mark Zuckerberg’s Day in Social Media Addiction Trial

See omnystudio.com/listener for privacy information.

A Blue Owl-Linked Structured Note Is Now Worth Just 47 Cents

Bloomberg Businessweek