_Economy and Finance

Insight: What's Going On in Private Credit? English 한국어 Hello. Today we are taking a clear and straightforward look at the latest memo from legendary investor Howard Marks of Oaktree Capital, titled "What's Going On in Private Credit?". This insightful piece breaks down the rapidly growing private credit market, pointing out both its historical drivers and the hidden risks that are starting to surface. First, let's explore how private credit became so massive. Following the 2008 Global Financial Crisis, traditional banks faced tough new regulations that forced them to pull back from corporate lending. However, private equity firms still needed enormous amounts of capital to buy companies. Non-bank lenders stepped in to fill this gap, fueling the explosive rise of direct lending. Over the last 15 years, this market has skyrocketed to an astonishing $2 trillion in size. Next, Howard Marks warns that direct len...

Howard Marks: Distressed Debt and Real Estate Investment Outlook (Source: ValueWalk, December 17, 2013 ) Howard Marks, Chairman of Oaktree Capital Group, shared his views at the 2013 Goldman Sachs Financial Conference regarding the U.S. Federal Reserve’s tapering policy. He argued that markets had already priced in much of the tapering effect, so the actual implementation might not cause a sharp rise in yields. Marks noted that the current economic recovery is weaker than past cycles, with moderate inflation. He estimated that the 10-year Treasury yield would remain between 3% and 4%, regardless of tapering. Institutional investors such as U.S. pension funds and endowments typically target returns of 7.5–8%. However, with Treasuries yielding 1–3%, investment-grade bonds around 4%, and equities at 6–7%, investors are increasingly turning to alternatives. Marks highlighted that hedge funds have struggled to deliver such returns, while private equity and private real estate can gen...