06:20 AM EDT, 03/12/2026 (MT Newswires) -- Blue Owl's (OWL) private credit funds are facing scrutiny after Glendon Capital Management warned investors of hidden losses and misrepresented valuations, the Financial Times reported Thursday.

In a presentation seen by the media outlet, Glendon said Blue Owl and other private credit managers overstated the value of riskier junior loans and reported unrealistically low loss rates.

"Private credit losses are misrepresented and the credit is far worse than thought," Glendon said, according to the FT, adding that junior bond yields stood at less than 7% compared with more than 10% for senior loans.

Glendon focused on Blue Owl Capital Corporation's $17 billion OBDC fund, noting discrepancies between the fund's year-end 2025 valuations and current market prices, the report said.

Blue Owl did not immediately respond to MT Newswires' request for comment.

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