The Memo by Howard Marks Reflections on Oaktree Conference 2026 with Howard Marks
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Mar 24, 2026 
Howard Marks, co-founder and Co-Chairman of Oaktree Capital Management and famed memo author, reflects on the Oaktree conference. He explores the evolution of credit markets and the rise and cycle of direct lending. He discusses mispricings from others' mistakes, the dangers of popular sectors and leverage, and how leadership and culture shape long-term value.
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How One 1978 Phone Call Shaped Howard Marks
- Howard Marks traced his first exposure to high-yield bonds to a 1978 phone call about Michael Milken's innovation.
- That seed led him to build expertise in sub-investment grade markets and ultimately co-found Oaktree, shaping decades of strategy.
How Market Entry Erodes Direct Lending Returns
- Marks describes the standard supply/demand cycle: early scarcity creates high returns and safety, but influx of capital drives down yields and protections.
- He uses direct lending since 2011 as an example where competition eroded documentation and excess returns disappeared by 2024–25.
Construct Multi Strategy Credit Portfolios
- Build multi-strategy credit solutions using bottom-up credit selection and dynamic asset allocation to manage income and risk.
- Oaktree combines diverse liquid credit strategies to deliver balanced client solutions rather than single-product sales.