Oatkree’s Marks Says Distress Is Coming as Fed Withdraws Support

The transcript discusses the concept of 'fallen angels'—investment-grade bonds downgraded to junk status—and the Federal Reserve's potential actions in buying such bonds. It explores the Fed's unlimited buying power and its impact on the market, highlighting the artificial nature of such a market. Oak Tree's strategy in response to these market changes is examined, noting their reduced buying activity due to increased prices. The discussion also covers future investment opportunities, potential defaults, and the impact of the ongoing crisis, suggesting that Oak Tree may become more aggressive in buying as market dislocations present bargains.

Discuss the potential for defaults in high-yield bonds and its impact on the market.

What strategies might Oak Tree employ in response to market dislocations?