Howard Marks Pivots Back to Caution After Catching Distress Wave
- Veteran investor sees scarce buying opportunities with rebound
- U.S. distressed targets have shrunk since the Fed intervention
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Howard Marks, the dean of distressed-debt investing who turned bullish within days of the sector’s 2020 low, is back to a cautious stance now that the ensuing rally has whittled attractive targets down to pre-pandemic levels.
“When the level of optimism is high, there is usually more room for disappointment,” Marks, the co-founder of Oaktree Capital Group, said in a Tuesday telephone interview. “The main way to achieve high returns in a low-return world is through taking increased risk. And I don’t think this is the climate to take more risk.”