India's Rs 11L cr bad loan pile lures global investors: Deloitte 2019/09/27 14:38:25 The Economic Times India
By Denise WeeA growing pile of bad debt in Asia is luring more global investors.That’s the view of consulting firm Deloitte LLP, which estimates that nonperforming loans held by banks across Asia jumped 23% to $640 billion, amid a slowdown in the global economy and simmering U.S.-China trade tensions.China continues to dominate the region’s soured loans, with a total of $295 billion held by Asian banks, while India is the second largest at about $160 billion, according to Deloitte in a report. China’s nonperforming debt has lured global funds from Oaktree Capital Group LLC to Bain Capital Credit, while India needs foreign capital to clean up the world’s worst bad-loan pile.The scale of China’s nonperforming loan market is “on par with even the busiest of European markets,” with Deloitte estimating that 380 billion yuan ($53 billion) of soured debt traded in the secondary market in 2018. Foreign investors were “under-represented,” buying only 4% of these NPL portfolios by value, it said.Overseas investor interest in China has risen over the past couple of years, “with several high-profile buyers entering the market,” according to Deloitte.
Fed rates cuts are a mistake, says Oaktree’s billionaire co-chairman 2019/09/20 11:27:00 MarketWatch
Our call of the day from Oaktree Capital’s billionaire co-chairman Howard Marks says the economy doesn’t really need rate cuts the Fed’s been doling out.
'Big Short' investor Michael Burry is calling passive investment a 'bubble.' He's not the only finance luminary sounding the alarm. 2019/08/29 17:33:44 Business Insider
Michael Burry, the investor made famous by "The Big Short," told Bloomberg Wednesday that he sees a bubble in passive investing. Many other money managers have called out the investment strategy, which they say isn't the best course of action for investors in the current market environment. Read more on Markets Insider. Michael Burry, the investor that famously shorted mortgage securities before the 2008 housing crisis, told Bloomberg on Wednesday that he sees a "bubble" in passive investing. That bubble is ignoring small-cap stocks, said Burry, who was a key figure in Michael Lewis' bestselling book "The Big Short" and was played by Christian Bale in the movie with the same name. The problem is happening because the pillars of passive investing — exchange-traded funds and index-based assets— mostly focus on bigger companies. This puts downward pressure on the stocks of smaller companies and has effectively "orphaned smaller value-type securities globally," he wrote to Bloomberg in an email.
Why Aren’t Investors Worried? Ask Howard Marks 2019/08/05 01:59:00 The Wall Street Journal
Q&A: Oaktree Capital’s co-founder says the duration of the recovery and inflation are causes for concern.