Great follow-up podcast on “Sea Change” topic – “This Time Might Be Different” from OakTree / Howard Marks:
- Majority of current investment professionals (joined after 1980) have seen only climate where interest rates were declining, low or both.
- People think low interest rates are normal.
- Interest rates are not going to decline by 2000 bps anytime soon (1980 > 2020).
- Declining interest rates had an impact on economy growth, markets, asset prices and investors’ behavior.
- There is belief that declining and ultra-low rates are not going to happen soon and current rates to stay for longer (5-10Y).
- It’s a good time to be a high-quality lender.
Thus, now you can potentially get equity type returns from lower risk debt #investment.
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