Market Beats | Oaktree meets all redemption requests for $7.7 billion fund; SoftBank secures $40 billion loan for OpenAI investment; Michael Hartnett:Buy consumer stocks to play policy panic; US Senate passes bill to fund Department of Homeland Security; ICE Increases Stake in Polymarket; Microsoft Faces Dual Challenges in AI Era

—— Oaktree meets all redemption requests for $7.7 billion fund; SoftBank secures $40 billion loan for OpenAI investment; Michael Hartnett:Buy consumer stocks to play policy panic; US Senate passes bill to fund Department of Homeland Security; ICE Increases Stake in Polymarket; Microsoft Faces Dual Challenges in AI Era;

1. Oaktree meets all redemption requests for $7.7 billion fund

Oaktree Capital Management has announced it will fulfill all redemption requests for its $7.7 billion Oaktree Strategic Credit Fund, a private credit vehicle aimed at retail investors. In a regulatory filing on Friday, the Los Angeles-based firm stated it would allow investors to withdraw 8.5% of the fund’s net assets, totaling approximately $400 million.

To help satisfy the high volume of requests, Oaktree’s parent company, Brookfield, is contributing roughly $80 million of its own cash. This move distinguishes Oaktree from other private credit managers that have recently enforced caps on withdrawals to manage liquidity during a broader market squeeze.

In a letter to investors, Oaktree emphasized its conservative management of assets and liabilities, noting that the fund is positioned to preserve liquidity while still pursuing investment opportunities.

The surge in redemptions comes amid industry-wide concerns regarding credit underwriting quality and the potential for AI to disrupt software companies held within these portfolios.

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2. SoftBank secures $40 billion loan for OpenAI investment

SoftBank Group Corp. has signed a $40 billion bridge loan to finance its expanding stake in OpenAI, signaling founder Masayoshi Son’s commitment to the global AI race. The non-collateralized loan, maturing in 12 months, will fund a $30 billion follow-on investment in the ChatGPT creator and cover other related costs.

The facility is being underwritten by a syndicate of major banks, including JPMorgan Chase, Goldman Sachs, and Japan’s “mega-banks” Mizuho, SMBC, and MUFG. This marks SoftBank’s largest-ever dollar-denominated borrowing. The company plans to repay a portion of the facility through the strategic sale of existing assets.

The surge in Arm’s stock price, up over 40% this year, has significantly bolstered SoftBank’s balance sheet and its capacity to finance these massive bets on artificial intelligence infrastructure and startups.

SoftBank’s total exposure to OpenAI now exceeds $60 billion, making it one of the firm’s core holdings alongside its 90% stake in Arm Holdings.

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3. Michael Hartnett:Buy consumer stocks to play policy panic

Investors should buy consumer stocks as a way to play policy panic as the US strives to prevent a recession,according to Bank of America’s Michael Hartnett.The strategist noted that President Donald Trump is likely to push for moves that will shield the US consumer from an economic downturn and support his popularity among voters once the Middle East conflict is resolved.

Hartnett assumes a policy panic to avoid recession as Trump pursues a post-war pivot to address affordability and a slump in approval ratings.He pointed to potential policy moves around universal basic income to protect workers.November midterm elections are pressuring Trump to counter unhappiness over the rising cost of living,made worse by the oil spike from the Iran war.

Polls have shown voters souring on the president’s economic agenda as high costs for housing,groceries and utilities squeeze pocketbooks.Hartnett highlighted US consumer stocks as his favorite contrarian long given concerns around inflation and slower economic growth.

The sector is currently trading near lows relative to the S&P 500 index that match times of market crisis,like the Covid pandemic and the global financial crisis.

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4. US Senate passes bill to fund Department of Homeland Security

The US Senate passed legislation early Friday to fund most of the Department of Homeland Security,forging a path to end a lengthy partial government shutdown.The shutdown had snarled airport security and threatened to further impact an economy already roiled by the Iran war.The bill passed by voice vote and now moves to the House for approval before reaching President Donald Trump for his signature.

The move marks an abrupt reversal for Republicans,who had previously blocked similar Democratic proposals for weeks.Democrats had offered to fund most of DHS excluding Border Patrol and Immigration and Customs Enforcement,seeking to pair funding for those agencies with stricter immigration enforcement rules.However,the growing crisis at national airports forced a change in strategy.

Historically long waits at checkpoints in cities like Atlanta, Houston, and New York put immense pressure on lawmakers. As unpaid TSA agents called out sick or resigned, lines snaked through terminals and even outdoors.

Frustrated passengers faced missed flights, creating a sense of urgency to resolve the impasse and restore normal operations to the nation’s travel infrastructure.

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5. ICE Increases Stake in Polymarket

Following its initial investment last October, Intercontinental Exchange Inc. (ICE), the parent company of the New York Stock Exchange, has moved to strengthen its position in Polymarket with an additional $600 million cash injection. The exchange also disclosed plans to purchase up to $40 million in securities from existing holders. These moves bring ICE’s total stake in the prediction market platform to approximately $1.64 billion, successfully fulfilling its investment commitment.

The momentum for prediction markets has surged significantly since the 2024 US presidential election, drawing substantial capital into the sector, as seen with recent major funding rounds for competitors like Kalshi.

ICE noted that specific valuation details regarding this latest round will be released once Polymarket concludes its current fundraising efforts.

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6. Microsoft Faces Dual Challenges in AI Era

Microsoft Corp. finds itself at the center of two turbulent trends roiling the tech sector, putting the stock on track for its worst quarterly performance since the global financial crisis two decades ago. First, the software giant is doubling down on capital expenditures at a time when Wall Street is increasingly questioning when AI infrastructure investments will yield significant revenue growth. Second, investors are offloading software stocks over fears that AI startups like OpenAI and Anthropic are creating agents that could eventually replace Microsoft’s core products.

The company’s stock has plunged 24% in the first quarter, marking its sharpest decline since the fourth quarter of 2008 and making it the weakest performer among the Magnificent Seven tech giants. While the selloff has left the stock trading at its lowest valuation since 2016, market confidence remains shaken.

Jonathan Cofsky, a portfolio manager at Janus Henderson Investors, noted that for the shares to recover, investors need reassurance that AI competition won’t materially decelerate software growth or pressure the company’s margins and pricing power.

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7. Netflix raises US subscription prices across all plans

Netflix Inc. has increased the monthly cost of its standard streaming subscription with ads in the US by $1, bringing the price to $8.99. This marks the first price hike for the ad-supported tier in just over a year, as the company continues to adjust its revenue model amid a competitive streaming landscape.

The price increases extend to Netflix’s ad-free tiers as well. The standard plan without ads has risen by $2 to $19.99 per month, while the premium plan—which supports up to four devices simultaneously—climbed $2 to $26.99. In a statement, the company emphasized its commitment to offering a range of plans to meet various consumer needs.

Netflix cited heavy investment in original programming and live events as the primary drivers for the hike. Recent highlights include a new season of the anime hit “One Piece,” the film “Peaky Blinders: The Immortal Man,” and high-profile live broadcasts like the recent BTS comeback concert.

The new pricing is effective immediately for new subscribers, while existing members will receive a 30-day notice via email.

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