ARCC Vs OBDC: Valuation Gaps Widen On Growing Credit Fears

Blue Owl Capital (OBDC) is rated Buy, while Ares Capital (ARCC) is downgraded to Hold, reflecting valuation asymmetry despite similar credit quality. OBDC trades at a ~27% discount to NAV versus ARCC's ~9%, yet underlying credit risk and non-accruals remain comparable between the two. OBDC's Q4 non-accruals were 1.1%, below ARCC's 1.2%, and asset sales at 99.7% of carrying value support mark credibility.