The Business Times

Howard Marks

CO-FOUNDER AND CO-CHAIR OF OAKTREE CAPITAL MANAGEMENT AND AUTHOR OF ‘MASTERING THE MARKET CYCLE: GETTING THE ODDS ON YOUR SIDE’

The choice between ownership or debt is subjective, largely a function of the investor’s circumstances and attitude towards bearing risk.

There are only two asset classes: ownership and debt

Non-investment grade public and private debt now offer prospective returns that are competitive with equities

The magnification of gains and losses stemming from leverage is typically symmetrical. A given amount of leverage amplifies gains and losses similarly. But levered portfolios face a downside risk to which there is not a corresponding upside: the risk of ruin.
WEALTH & INVESTING

Why investors should exercise restraint on debt

Moderate use of leverage should usually provide a good-enough return

Easy money keeps the economy aloft, at least temporarily
WEALTH & INVESTING

Say farewell to the corrupting era of easy money

Ultra-low interest rates are unlikely to return, meaning new investment strategies are needed

Investors can now potentially get solid returns from credit instruments, and no longer have to rely as heavily on riskier investments to achieve their overall return targets.
WEALTH & INVESTING

A sea change is under way in markets

The investment world may be experiencing the third big shift of the past 50 years

Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
View More