The Memo by Howard Marks

What's Going on in Private Credit?

In his latest memo, Howard Marks discusses the evolution of the sub-investment grade credit market from its beginnings in the 1970s to its present state. He focuses on the rise of direct lending following the Global Financial Crisis, identifying the reasons for its fast growth but also the issues created by rapid capital deployment. Looking ahead, he describes the entwined fates of direct lending and private equity, with the performance of private equity portfolio companies being a key determiner of the future success of direct loans. You can read the memo here [https://www.oaktreecapital.com/insights/memo/whats-going-on-in-private-credit] (https://www.oaktreecapital.com/insights/memo/whats-going-on-in-private-credit). This episode uses an AI reader.

Reflections on Oaktree Conference 2026 with Howard Marks

In this special episode of The Insight: Conversations, Howard Marks shares his reflections on themes from Oaktree’s recent client conference, including the evolution of the credit markets, the nature of mispricings, and the importance of leadership.

AI Hurtles Ahead

In his latest memo – occasioned by massive changes he cites in just the 11 weeks since the last one – Howard Marks revisits the subject of AI, providing his observations on its essence and how it differs from previous technological innovations. He highlights AI’s immense power, speed, and autonomy; its limitations; and its potential implications for investing. He expresses conviction that AI is far from a fad, but also that investors must view its transformational potential against an assessment of the appropriateness of the prices of AI assets. You can read the memo here [https://oaktreecapital.com/insights/memo/ai-hurtles-ahead] (https://oaktreecapital.com/insights/memo/ai-hurtles-ahead).

Is It a Bubble?

In his latest memo, Howard Marks addresses the much-asked question, “Is there a bubble in AI?” He identifies the uncertainty associated with AI investments and the conspicuous parallels to previous bubbles, while also acknowledging why those comparisons could be inappropriate. Given AI’s vast potential but numerous unknowns, no one can say for certain whether investors’ current enthusiasm is merited or irrational. Thus, Howard emphasizes the importance of prudence and selectivity in navigating this transformative yet unpredictable technological revolution. You can read the memo here [https://oaktreecapital.com/insights/memo/is-it-a-bubble] (https://oaktreecapital.com/insights/memo/is-it-a-bubble).

Cockroaches in the Coal Mine

In his latest memo, Howard Marks examines the recent string of well-publicized credit problems. He considers how they serve as a reminder that the yield premium offered by sub-investment grade credit isn’t a freebie, but rather compensation for bearing credit risk. While good times lead to complacency and elevated risk tolerance, bad times expose the results of that carelessness. Howard emphasizes that it’s essential to always balance the desire to put money to work with the need for prudence. You can read the memo here [https://oaktreecapital.com/insights/memo/cockroaches-in-the-coal-mine] (https://oaktreecapital.com/insights/memo/cockroaches-in-the-coal-mine [https://oaktreecapital.com/insights/memo/cockroaches-in-the-coal-mine]).