Pimco Buys All $400 Million of Bonds Sold by Blue Owl BDC

Pacific Investment Management Co. bought all $400 million of bonds issued on Monday by a Blue Owl Capital Inc. private credit fund, according to people with knowledge of the matter.

The purchase comes amid a selloff that pushed spreads on notes from similar funds to multiyear highs in recent weeks, fueled in part by concerns over lending standards and exposure to software companies vulnerable to disruption from AI. Whether Pimco intends to hold onto the bonds is an open question, with at least one secondary-market trade of more than $5 million occurring since the sale, Trace data show.