Howard Marks Says Oaktree Is Increasing Demand for Safety

The transcript discusses a firm's approach to managing credit market risks. It questions whether the firm is moving away from riskier credit market segments, such as triple C rated bonds or single B loans, in favor of higher-rated credits. The firm emphasizes that it relies more on its analysis than on credit ratings to determine safety. Over time, the firm has increased its demand for safety while still holding a significant amount of single B bonds, which they believe have been thoroughly vetted.

What is the firm's stance on moving away from riskier credit market segments?

• They are cautiously considering moving away.

• They are fully committed to riskier segments.

• They have already moved away completely.

• They are not interested in any credit market.

How does the firm view credit ratings in terms of safety?

• They rely entirely on ratings for safety.

• They consider ratings as one of many factors.

• They think ratings are irrelevant to safety.

• They believe ratings are the sole indicator of safety.

What is the firm's approach to analyzing credit safety?

• They rely on external analysis.

• They conduct their own thorough analysis.

• They use a random selection process.

• They follow industry trends blindly.

What has the firm done over time regarding their demand for safety?

• They have gradually increased their demand for safety.

• They have ignored safety concerns.

• They have maintained the same level of demand.

• They have decreased their demand for safety.

What is the firm's current position on holding single B credits?

• They have increased their single B holdings without vetting.

• They are unsure about their single B holdings.

• They still hold single B credits but have vetted them well.

• They have completely divested from single B credits.