A change in stance from Howard Marks at Oaktree Capital

A change in stance from Howard Marks at Oaktree Capital. We've argued for a few years that credit standards were dropping as investors - chasing yield - became less disciplined and less discerning. But we knew great buying opportunities wouldn't arrive until a negative igniter caused the tide to go out, exposing the debt's weaknesses. The current oil crisis is an example of something with the potential to grow into that role. We'll see how far it goes. For the last 3½ years, Oaktree's mantra has been move forward, but with caution. For the first time in that span, with the arrival of some disarray and heightened risk aversion, events tell us it's appropriate to drop some of our caution and substitute a degree of aggressiveness. The latest memo from Oaktree looks closely at the contagion effects of the recent fall in oil prices which in turn leads Howard Marks to explain his change in stance towards markets. If you are looking for some holiday reading this piece is worth considering: (VIEW LINK)