OTF

Blue Owl Technology Finance trades at a steep 41% discount to NAV, reflecting market concerns over credit quality and dividend coverage. Non-accruals rose to 1.1% of the portfolio, mainly due to Signifyd's preferred stock, but this remains low relative to peers. OTF's dividend exceeds net investment income, with coverage at 83% in Q3; a cut is possible, but the current yield is 14.3%.

NEW YORK, Nov. 4, 2026 /PRNewswire/ -- Blue Owl Technology Finance Corp. (NYSE: OTF) ("OTF" or the "Company") today announced financial results for its third quarter ended September 30, 2026. THIRD QUARTER 2026 HIGHLIGHTS  Third quarter GAAP net investment income ("NII") per share of $0.29 Third quarter adjusted NII per share(1) of $0.29, as compared to the prior quarter of $0.30 Dividends totaled $0.40 per share, including a base dividend of $0.35 per share and a special dividend of $0.05 per share that was declared in connection with the listing, representing an annualized dividend yield of 9.6%(2) All special dividends declared in connection with OTF's listing last June have now been paid Net asset value ("NAV") per share increased to $16.62, as compared to $16.48 as of June 30, 2026 New investment commitments were $441 million and sales and repayments were $334 million Net debt-to-equity ended at 0.94x, as compared with 0.93x as of June 30, 2026 Investments on non-accrual represented 1.8% and 1.1% of the portfolio at cost and fair value, respectively, as compared to 0.6% and 0.1% as of June 30, 2026 Repurchased $55 million of common stock during the quarter, which was accretive to third quarter NAV per share Raised $900 million of new debt capital, including $550 million of senior unsecured notes, $250 million through a new SPV facility, and $100 million by upsizing an existing bilateral SPV "OTF delivered a strong third quarter, with steady earnings and a rebound in NAV driving an 11.7% net income ROE," said Craig W.

Every so often, the market hands investors high-yielding opportunities on a platter after throwing out the baby with the bathwater. I detail why I think there are certain BDCs that this applies to right now. I discuss the specifics of what I am looking for as well as some of my top picks of the moment.

Business development companies are an overlooked corner of private credit and a chance for individual investors. Market fear has pushed some high-yield BDCs well below their net asset value, despite solid fundamentals. I highlight two discounted BDCs with strong balance sheets, healthy loan books, and well-covered dividends.

Two opportunities offer 15%+ dividend yields while trading at approximately 45% discounts to their underlying net asset values. Both appear incredibly cheap, but their underlying fundamentals tell dramatically different stories. I explain why I believe one offers a rare opportunity to lock in enormous income and substantial upside, while the other could be a dangerous value trap.

Five major BDCs—Blue Owl Technology Finance Corp., FS KKR Capital Corp, Morgan Stanley Direct Lending Fund, Blue Owl Capital Corporation, and Oaktree Specialty Lending Corporation—trade at steep discounts to NAV, implying extreme loan losses not reflected in credit performance. Current market prices require annualized loan losses far exceeding historical peaks, despite portfolios of senior secured, diversified loans and low non-accruals. Buybacks at deep discounts signal management confidence in loan valuations, with OTF and FSK notably active in repurchasing shares.

We take a look at this income market sell-off and review some of the key strategies investors can use to take the most advantage of it. Relying on static buy-under targets is ineffective and potentially dangerous during both systemic and idiosyncratic drawdowns. Effective risk management requires scenario analysis, diversification, and an 'All Weather' allocation approach rather than single-outcome bets.

Double-digit dividend yields typically signal serious risks. However, occasionally, the market offers rare opportunities to lock in enormous income without sacrificing long-term growth. I highlight two deeply discounted dividend stocks yielding over 10% that I believe offer surprisingly sustainable payouts backed by resilient cash flows.

SAN FRANCISCO, Oct. 07, 2026 (GLOBE NEWSWIRE) -- Girard Sharp LLP, a national investment, securities, and consumer class action law firm, has filed a securities class action against Blue Owl Technology Finance Corp. (“OTF”). According to the complaint, the class includes former OTF II shareholders who acquired newly issued OTF common stock in exchange for OTF II securities pursuant to the March 24, 2025 stock-for-stock transaction (the “Merger”) by which OTF merged with and acquired OTF II (the “Class”).

Blue Owl Technology Finance Corp. trades at just 0.59× NAV after a 40% selloff, with credit fears overstated as non‑accruals remain minimal and software borrowers show stable fundamentals. OTF's dividend coverage is tight: recurring NII covers only ~86% of the $0.35 payout, and the math suggests a reset to ~$0.30 unless rates rise or earnings rebound. Scenario analysis shows asymmetric upside: a base case of +25% total return and a bull case of +50%, with OTF valuation driven by required returns rather than credit losses.