Howard Marks Bemoans Fed Help for Junk Bonds, Leveraged Debt
- Oaktree co-founder says market needs ‘healthy fear of loss’
- Fed trying to protect companies from their own actions: Marks
This article is for subscribers only.
Howard Marks, the dean of investing in troubled businesses, is questioning why the Federal Reserve is giving those companies so much help.
“What’s the Fed’s purpose in buying non-investment grade debt?” Marks, the co-founder of Oaktree Capital Group LLC, wrote in a memo to clients Tuesday. “Does it want to make sure all companies are able to borrow, regardless of their fundamentals? Does it want to protect bondholders from losses, and even mark-to-market declines?”