Howard Marks thinks that the drop in oil prices could finally expose low lending standards and ultimately provide better value in the markets.
"We've argued for a few years that credit standards were dropping as investors—chasing yield—became less disciplined and less discerning. But we knew buying opportunities wouldn't arrive until a negative 'igniter' caused the tide to go out, exposing the debt's weaknesses," the Oaktree Capital Management chairman wrote in a note to clients late Thursday.
"The current oil crisis is an example of something with the potential to grow into that role. We'll see how far it goes."