Howard Marks was a "very active buyer" in March, when the world was falling apart.
But Jerome Powell screwed things up for him.
See, it's harder to get bargains in distressed debt when the benefactors with the printing presses are determined to make debt not distressed again (apologies for the MAGA reference).
Marks has penned more than a half-dozen memos since the onset of the crisis. His latest, released last week, was a misguided attempt to wax philosophical about indeterminacy in the face of unprecedented circumstances.
Before that, he spilled gallons of digital ink oscillating from cautious to gung-ho and back again, before finally settling on a wholly generic "moral hazard" argument for why the Fed's corporate credit facilities are perilous.
During an interview with Bloomberg's “Front Row”, Howard reiterated his reservations about the central bank's interventions.
"Those of us in the markets believe that stocks and bonds are selling at prices they wouldn’t sell at if the Fed were not the dominant force", he said. "So if the Fed were to recede, we would all take over as buyers, but I don’t think at these levels".
At least he's honest about it. The bottom line
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