In his latest memo, Howard Marks discusses the evolution of the sub-investment grade credit market from its beginnings in the 1970s to its present state. He focuses on the rise of direct lending following the Global Financial Crisis, identifying the reasons for its fast growth but also the issues created by rapid capital deployment. Looking ahead, he describes the entwined fates of direct lending and private equity, with the performance of private equity portfolio companies being a key determiner of the future success of direct loans. You can read the memo here (https://www.oaktreecapital.com/insights/memo/whats-going-on-in-private-credit). This episode uses an AI reader.

In this special episode of The Insight: Conversations, Howard Marks shares his reflections on themes from Oaktree’s recent client conference, including the evolution of the credit markets, the nature of mispricings, and the importance of leadership.

In his latest memo – occasioned by massive changes he cites in just the 11 weeks since the last one – Howard Marks revisits the subject of AI, providing his observations on its essence and how it differs from previous technological innovations. He highlights AI’s immense power, speed, and autonomy; its limitations; and its potential implications for investing. He expresses conviction that AI is far from a fad, but also that investors must view its transformational potential against an assessment of the appropriateness of the prices of AI assets. You can read the memo here (https://oaktreecapital.com/insights/memo/ai-hurtles-ahead).

Howard Marks's Memo "Is It a Bubble?"

Howard Marks's Memo "Cockroaches in the Coal Mine"

Howard Marks's Memo, "A Look Under The Hood"

Howard Marks Celebrates 35 Years of Memos with a Fireside Chat

Howard Marks's Memo, "The Calculus of Value"

Howard Marks's Memo, "More on Repealing the Laws of Economics"

Oaktree's cofounders - Howard Marks, Bruce Karsh, and Sheldon Stone - share stories about the firm's origins