- "The Race Is On," says Howard Marks (OAK +1.6%) in his latest memo as he's starting to see some of the same behavior which had him so worried in early 2007, particularly the heavy use of debt to fund buybacks and dividends, and the "full flower" return of covenant-lite and paid-in-kind debt issuance
- Still, he says, with relatively subdued buyout action and derivatives off the front page, activity isn't nearly as bubbly yet as the 2007 era. He doesn't think it's yet time to bail out of the markets.
- It's my belief that when investors take on added risks - whether because of increased optimism or because they're coerced to do so (as now) - they often forget to apply the caution they should ... risk aversion is the essential element in sane markets."
at CNBC.com (Nov 18, 2014)