Bank of America (BofA) has pledged $25 billion of its own funds towards private-credit investments, building on its current direct-lending activities. The bank intends to source these transactions through its capital-markets unit, a division within its investment-banking arm, according to the Financial Times.BofA also promoted Anand Melvani to head of private credit for the global capital market division. Mevani will still assume his position as head of Americas, leveraged finance, the FT reported.The firm ...

Core Points - CoreWeave stock experienced a decline of up to 12% on Friday, despite being up approximately 19% year to date [1] - The decline was triggered by a report indicating that Blue Owl Capital could not secure debt financing for a data center co-developed with CoreWeave, which is located in Pennsylvania [2] - Lenders are hesitant to finance AI firms with below-investment-grade credit, as CoreWeave's debt is rated B+ by S&P Global Ratings, significantly below investment grade [2] - Concerns have been raised regarding the sustainability of CoreWeave's business model, which relies on renting compute power to AI customers, especially given its high debt-to-equity ratio [3] - The enthusiasm for AI has diminished over the past six months, further impacting investor confidence in CoreWeave [3] - A proposed merger between CoreWeave and Core Scientific fell through due to opposition from a major shareholder, raising additional concerns about CoreWeave's financial health [4] - Notable short-seller Jim Chanos has expressed skepticism about CoreWeave's financials and profitability, advising caution for investors in data center stocks [4] - Blue Owl Capital has also been in the news for halting redemptions on one of its private credit funds aimed at retail investors, indicating potential liquidity issues [5]

Key Takeaways Get personalized, AI-powered answers built on 27+ years of trusted expertise. A private credit fund is triggering visions of cockroaches and canaries in coal mines in some investors' minds. Alternative asset manager Blue Owl Capital (OWL) earlier this week said that investors in one of its funds—private credit funds are generally built around loans held outside banks —would have to wait to get their money back as it sells portions of its loan book. That raised concerns that there were bigger i ...

Market Analysis by covering: BlackRock Inc, Blackstone Inc, United States 10-Year, Apollo Global Management LLC Class A. Read 's Market Analysis on Investing.com ...

分组1: Walmart - Walmart's earnings report showed a slight dip, with the stock not moving much post-earnings despite beating expectations for the holiday quarter [5][4] - The company is moderating expectations for the year, indicating a changing retail landscape driven by technology and AI [6][5] - Walmart's stock had previously reached a new high, becoming part of the $1 trillion market cap club, but is now slightly below that level [5] 分组2: Carvana - Carvana's stock dropped 8% following earnings, despite a 58% increase in revenue and a 43% increase in the number of vehicles sold [9] - The decline in stock price is attributed to lower profit margins per vehicle sold, raising concerns about expenses [9][14] - The company's high capital investment model may lead to volatility in profitability, depending on sales performance [14] 分组3: Blue Owl Capital - Blue Owl Capital's stock fell after changing its redemption policy for a retail-focused private credit fund, raising concerns about the private credit industry's liquidity [7][8] - The company sold $1.4 billion in debt investments to institutional investors, highlighting potential weaknesses in the market [7] - Concerns about mismatches between redemption processes and loan illiquidity have been identified as risks in the private credit sector [8] 分组4: Economic Indicators - The Supreme Court ruled that many of Trump's tariffs are illegal, which may impact market dynamics and investor sentiment [19][20] - Upcoming economic reports include consumer confidence and PPI, with inflation concerns rising as core PCE increased to 3% in December [23][24] - The GDP growth rate for Q4 was 1.4%, down from 4.4% in Q3, indicating a slowing economy [27] 分组5: AI and Labor Market - The integration of AI in various sectors is accelerating, but there are concerns about the high capital expenditures required to compete in the AI space [6][16] - The labor market may face structural issues due to AI advancements, potentially leading to higher unemployment in certain job sectors [29][30] - Companies will need to adapt to the changing job landscape as AI takes over roles traditionally considered secure, such as programming [29]

For me to say that the market has not been prepared for the upheavals that are taking place in the private creditJR Research is an opportunistic investor. I was recognized by TipRanks as a Top Analyst, and also by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. I identify attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. My picks have consistently demonstrated market o ...

Keeping an eye on shares of Blue Al. You can see uh it and other alternative asset managers stocks have been under pressure. This certainly was the case yesterday after the firm said it would halt quarterly redemptions in its retail focused debt fund, opting instead to return capital via episodic payouts as it did sell down 1.4% billion of assets to allow for that.The move did reignite concerns around liquidity and valuation for many private credit vehicles. Joining us now in a CNBC exclusive is Blue Isles ...

SaaS Markets Have Crashed in 2026. But Is Private Credit the Even Bigger Risk? We all know software stocks have entered a bear market in 2026. But the debt side of software might end up being a much bigger deal.IGV is down 23%+ year-to-date. $285 billion in market cap wiped out in a single day. Software P/S ratios compressed from 9x to 6x — levels we haven’t seen since the mid-2010s. But it’s more than just stocks going down.It puts huge stress on private credit’s $600-750 billion exposure to software comp ...

Core Insights - Blue Owl Capital is facing challenges in securing financing for a $4 billion data center project in Pennsylvania, which it is co-developing with CoreWeave, a rapidly expanding AI cloud computing service provider [1][2][3] Financing Challenges - The lack of lender interest in the Lancaster project is attributed to growing caution regarding AI companies with lower credit ratings, as CoreWeave holds a below-investment-grade rating of B+ from S&P Global Ratings [3] - A senior executive from a specialty lender indicated that they chose not to participate in the financing due to these concerns [3] Project Status - A spokesperson for Blue Owl stated that the Lancaster project is already under construction and is "fully funded, on time, and on budget," although it remains unclear if Blue Owl is solely funding the construction [7] - If Blue Owl cannot secure debt financing, it may face significant cash outlays for the project's construction [7] Market Context - The situation highlights the complexities and risks associated with financing infrastructure for AI computing, with analysts expressing concerns over the ability to raise debt for such projects [8] - Recent reports indicated that major banks struggled to sell off $38 billion of debt for two data center campuses anchored by Oracle, reflecting broader market hesitance [9][10] Strategic Partnerships - CoreWeave has committed to leasing 100 megawatts of capacity at the Lancaster data center, with potential expansion to 300 megawatts, and plans to invest up to $6 billion in the project [10] - In August, Chirisa Technology Parks announced a partnership with Blue Owl and Machine Investment Group to provide $4 billion in funding for the construction, separate from CoreWeave's investment [11] Innovative Financing Approaches - Blue Owl has been recognized for its creative financial strategies in the data center boom, including a previous partnership with Meta that raised $27.3 billion in investment-grade corporate bonds [12] - There are potential avenues for Blue Owl to explore alternative financing structures, such as leveraging the credit of investment-grade customers or pooling loans from institutional investors [13]

Group 1: Oil Market Dynamics - Oil prices rose to a six-month high, with benchmark Brent increasing by 0.5% to $72 a barrel, marking a weekly gain of over 6% [1] - The rise in oil prices is influenced by escalating tensions in Iran and the U.S. military buildup in the Middle East, which could impact oil supply from a region that produces about a third of the world's oil [5][6] Group 2: Stock Market Reactions - Asian shares dropped by 0.4%, following declines on Wall Street, while U.S. and European equity-index futures showed a slight increase of 0.3%, indicating potential stabilization in sentiment [2] - Wall Street experienced declines, particularly among alternative asset managers, after Blue Owl Capital Inc. restricted withdrawals from one of its funds [6] Group 3: Geopolitical Risks and Economic Indicators - The U.S. military's actions in the Middle East introduce new geopolitical risks, halting a tentative recovery in equities and dampening risk appetite [3] - Traders are closely monitoring upcoming U.S. economic and inflation data, especially after recent Federal Reserve meeting minutes raised concerns about price pressures [7] Group 4: Currency Movements - The U.S. dollar is on track for its best week in four months, driven by reduced expectations for Federal Reserve interest rate cuts and increased demand for safe-haven assets due to geopolitical risks [8] - The Bloomberg Dollar Spot Index rose by 0.9% this week, marking its largest gain since October, influenced by heightened inflation concerns and the military buildup in the Persian Gulf [9]