The Oaktree Capital co-founder loves distress, and says there will be plenty in the office market. But there’s one big reason he’s cautious about investing.
Already a subscriber?The market is turning in favour of Howard Marks, the co-founder and co-chairman of investment giant Oaktree Capital.and Marks cut his teeth trying to find troubled companies worthy of rescue.
“We’re already doing a big business lending money to companies who are in a jam,” he says. “They’re not bankrupt. They’re not defaulting. But if they can’t get some money in the next six months – and these particular companies probably can’t get it from the market – they will have a problem.“We’ll fill their need, but we’ll charge them for it. And we can do much more of that in this environment.”
First, Marks says the pandemic “shook up the snow globe” in terms of the way employees work, leading employers to lease less office space than in the past. Second, the arrival of artificial intelligence could mean less hiring, or at least less hiring of “people at desks”. “One of those two will be the best performing fund – I just have no idea which one is going to be. One of the things that’s really key in my belief system is when you don’t know something, you admit it to yourself and to others.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Bolsonaro failed to overthrow democracy – and why a threat remainsFederal Police arrested some of Bolsonaro’s closest aides and carried out search warrants against former ministers and high-ranked military officers. The allegation: plotting a coup.
Read more »
Staying the course: Howard rolled Defence plan to cut Iraq presenceSeven months after the invasion of Iraq, the Defence Department said it was time to cut Australia’s troop presence. Secret documents reveal how the plan was thwarted.
Read more »
Property investor Shane Quinn defies market fears and buys major office buildingsProperty investor Shane Quinn is defying market fears and buying major office buildings, despite the risks in the office sector. He predicts a 'bloodbath' in the B-grade office buildings market and expresses concerns about Melbourne's office market. However, Quinn has emerged as one of the few investors brave enough to make selective purchases.
Read more »
France enshrines abortion as a constitutional right as the world marks International Women's DayFrance inscribed the guaranteed right to abortion in its constitution on Friday, a powerful message of support for women&x27;s rights on International Women&x27;s Day.
Read more »
Perfect marks for only two teams; AFL enigma’s reality check: Report CardAFL: Melbourne's Clayton Oliver and Max Gawn spoke to Fox Sports following their convincing victory over the Western Bulldogs.
Read more »
‘Dark chocolate spread with almond butter’: What a managing director eats in a dayShaun Greenblo gets top marks from our dietitian Joanna McMillan for his day on a plate.
Read more »