Capitalizing on Private-Credit Turmoil for a Robust 6.4% Return

Avatar photo

Blue Owl Capital faced scrutiny this year when it placed redemption limits on its private credit fund, raising concerns across the market. This event highlights potential opportunities within private credit and regional banks.

The John Hancock Financial Opportunities Fund (BTO) has returned 14.7% since its purchase in January 2026 and currently offers a dividend yield of 6.4%. The fund’s net asset value (NAV) has outperformed the S&P 500 index, yet its market price has declined, leading to a rare discount.

Key holdings in BTO include regional banks such as Old National Bancorp, Citizens Financial Group, M&T Bank, and WSFS Financial, which are capitalizing on trends in private credit lending. As regional banks continue to thrive, BTO’s management expects further growth in dividends, having already increased payouts by 76% over the past decade.

5 Stocks Our Experts Predict Could Double In the Next Year

By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.

The free Daily Market Overview 250k traders and investors are reading

Read Now