Blue Owl Capital has seen heightened trading activity as investors closely assess the outlook for private credit markets, Bloomberg reports.

Short interest in the firm’s shares has climbed to record levels, with approximately 14.65% of Blue Owl’s free float held short, according to estimates from S3 Partners. An alternative measure from S&P Global Market Intelligence places short interest at roughly 17.9%.

Demand to borrow Blue Owl shares has also surged. More than 19m shares were borrowed during trading on Wednesday, making the stock the most borrowed among US equities at the time.

The increased trading activity follows a sharp decline in Blue Owl’s share price earlier this year, including its steepest monthly drop on record in February.

Market participants have pointed to broader concerns about the private credit sector and the potential impact of artificial intelligence on corporate spending and business models. Despite these pressures, Blue Owl executives have highlighted the strong credit performance of the firm’s lending strategies, citing historically low default rates in its private debt funds.

The company also addressed investor liquidity concerns earlier this year by selling assets to repay investors after halting quarterly redemptions in one of its funds. Executives said the move was intended to return capital more quickly and efficiently.

The developments illustrate how publicly listed alternative asset managers remain under close market scrutiny even as private credit continues to expand as a key financing channel for companies.

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