‘Secular change’ tough for some but the outlook’s bright
Given the shock of the new rate environment, some borrowers will experience problems, according to Howard Marks. He thinks talk of systemic risk is exaggerated though.
Expert analysis by Andy Thomson
Howard Marks provided a striking example of the phenomenon he labels credit’s “secular change” as it relates to borrowers in need of finance. During the ultra-low interest rate, high leverage years, a lender would offer an $800 million loan at 5 percent. Today, in the same situation, the lender instead...