Oaktree’s Howard Marks Expects More Companies to Default on Debt

  • Interest rate spikes curbing firms’ ability to raise cash
  • Buyout and real estate firms at risk for defaults, Marks says
WATCH: Howard Marks expects more companies to default on their debt.Source: Bloomberg
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Oaktree Capital Management co-founder Howard Marks said he expects more companies to default on their debt as higher interest rates make it harder for struggling companies to raise capital.

“When you go through a period when it’s super easy to raise money for any purpose or no purpose, and you go into a period when it’s difficult to raise money, even for a good purpose, clearly many more companies are going to founder,” Marks said in an interview taped for an upcoming episode of Bloomberg Wealth with David Rubenstein.