Ares Capital Vs. Blue Owl Capital: Why ARCC Is Better Positioned For Rate Cuts (ARCC)

Ares Capital Vs. Blue Owl Capital: A Battle Of BDC Titans Summary ARCC shows superior dividend coverage resilience in a -50bps rate cut scenario compared to OBDC. Non-accruals for ARCC trended down to 1.0% in Q3 2025, while OBDC experienced an uptick to 1.3%. Despite OBDC's higher yield, ARCC's historical Total Return outperforms, due to its equity-kicker strategy. I rate ARCC as a "Buy" for the rate-cut cycle, while OBDC remains a "Hold", due to potential payout pressure. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARCC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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