A memo from Howard Marks (Trades, Portfolio), co-chairman of Oaktree Capital, posted one of his much-anticipated memos on Wednesday, titled "The Seven Worst Words in the World."
This post focuses on today's market environment as it stands ten years from the bankruptcy of Lehman Brothers in 2008. The seven worst words he references come from a memo he wrote in 2007. They are: "Too much money chasing too few deals." Marks observes the current environment and the implications of its primary features, also examining debt levels, quality of debt and direct lending. Marks concludes that this is "a time for caution."
Marks also has a new book out next week, "Mastering the Credit Cycle: Getting the Odds on Your Side."
Read the memo here.
