Bloomberg News

LBO Maturity Wall Will Yield Few Bargains, Oaktree’s Marks Says

February 28, 2012

The wall of leveraged buyout loans set to mature through 2014 is unlikely to provide many opportunities for distressed-debt investors, according to Howard Marks, chairman of Oaktree Capital Management LLC.

Marks was speaking at the SuperReturn International conference in Berlin today.

On refinancing the debt-maturity wall:

The LBO maturity wall “isn’t enough, that’s stacking the wood. But what will ignite it? What will create the bargains from which distressed debt has enjoyed its peak returns?

“If the capital markets stay open, there aren’t going to be a lot of defaults when the maturity wall appears and no great opportunities for distressed-debt investors.”

“At present, apart from the looming wall of maturity, there are no specific concrete reasons to be unusually bullish about these things, so we’re not pounding the table to say this is peak opportunity.”

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net.

To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net


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