Oaktree’s Marks Sees Opportunities Abroad in ‘Downtrodden’ Debt

The video discusses the risks and opportunities in private and alternative markets, emphasizing the inefficiencies in private market pricing and the associated liquidity risks. It highlights the importance of manager selection in navigating these markets and identifies potential opportunities in downtrodden sectors and emerging markets, particularly China. The video also notes the varying strengths of global economies, suggesting that off-the-beaten-path investments may offer better risk-adjusted returns, albeit with inherent risks.

What is a key characteristic of private markets compared to public markets?

• They have no liquidity risk.

• They are more efficiently priced.

• They have less price deviation from value.

• They often have greater price deviations from value.

What is a potential risk when investing in private markets?

• Manager risk

• Liquidity risk

• Currency risk

• Inflation risk

Which type of market involves manager risk due to the need for expertise?

• Commodity markets

• Currency markets

• Alternative markets

• Public markets

What should investors look for in downtrodden sectors?

• Sectors with no risk

• Sectors that are likely to recover

• Sectors that have already recovered

• Sectors that will continue to decline

Which emerging market is highlighted as doing extremely well?

• Russia

• China

• Brazil

• India