The Roundup: Top Takeaways from Oaktree Conference 2024
Jun 27, 2024
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Howard Marks, Robert O'Leary, and Armen Panossian from Oaktree discuss the next frontier of private credit, dislocation in India's corporate debt markets, and the once-in-a-generation opportunity in commercial real estate at Oaktree Conference 2024.
Private credit is the next frontier for alternative lenders amid shrinking bank financing activities.
India's credit markets offer significant opportunities for private debt investors post-regulatory changes and banking challenges.
Deep dives
Market Outlook and Investment Environment
Howard Marks highlights the impact of the investment environment and the starting point for investments on success. He emphasizes the need for investors to adapt to changing environments and not expect the same results as before. Marks suggests that the fixed income investing landscape may offer better risk-return terms compared to equity, with competitive yields matching historical equity returns.
Asset-Backed Finance and Shifts in the Market
Alternative lenders are capitalizing on the shrinking asset financing activities of commercial banks to gain market share in asset-backed finance. The industry is witnessing a secular shift as banks scale back lending in certain segments due to regulatory changes and risk aversion, providing an opportunity for alternative lenders to fill the gap. Private credit is seen as the next frontier in this evolving market.
Global Opportunities in Private Debt and Real Estate
Private debt investors are eyeing India's underpenetrated credit markets, seeing significant opportunities post-regulatory changes and banking sector challenges. India's financing gap offers prospects for private creditors to secure high yields in a limited competition landscape. Additionally, the distressed U.S. real estate market presents an attractive investment cycle for providers of alternative real estate financing, driven by declining valuations and financing constraints among traditional lenders.
Oaktree recently held its biennial client conference featuring presentations from co-chairman Howard Marks, co-CEOs Robert O’Leary and Armen Panossian, and many other key Oaktree thought leaders. In a special edition of The Roundup, we’ve highlighted various topics discussed at Oaktree Conference 2024, including the next frontier of private credit, dislocation in India’s corporate debt markets, and the potentially once-in-a-generation opportunity in commercial real estate.
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