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# Why I'm Buying Blue Owl Capital Corp. III Over Blue Owl Capital Corp. In This Merger Arbitrage Opportunity (Archive)
- URL: https://www.huntingalphas.com/why-im-buying-blue-owl-capital-corp-iii-over-blue-owl-capital-corp-in-this-merger-arbitrage-opportunity-archive/
- Published: 2024-12-31T03:02:00.000Z
- Updated: 2026-02-28T08:09:38.000Z
- Description: Merger math and technicals favor OBDE for a modest edge over richly valued OBDC.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, OBDE, OBDC, Financials

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Blue Owl Capital Corporation and Blue Owl Capital Corporation III may be losing deal share as the numbers and narratives show subdued new investment activity; which is unusual given ARCC's positive developments in this regard.
- A dovish rates environment can put pressure on investment yields and net investment income for the OBDC + OBDE portfolio.
- OBDC is trading at near cyclical peak valuations vs peers, making buys in that less attractive.
- But my merger arbitrage math says there may be a small edge in buying OBDE over OBDC.
- OBDE vs SPX 500 also shows a bullish breakout after a descending triangle squeeze. Hence, I am bullish on OBDE. Relative valuations of OBDE vs OBDC is a key risk monitorable for my view.

Read the full article [here](https://seekingalpha.com/article/4747033-blue-owl-capital-corp-iii-over-blue-owl-capital-merger-arbitrage-opportunity?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*