The market selloff is creating enough bargains for investors to begin buying, though it’s too soon to call the bottom, according to Howard Marks, co-founder of distressed investment specialist Oaktree Capital Management.
“We’re certainly buying,” Marks said in a Bloomberg Television interview on Friday. “If you’re a distressed investor, you must turn more aggressive when you’re given good chances. I’m not saying this is the bottom, but this is certainly a time to do some buying.”
Stocks plunged and U.S. credit markets were suffering their worst day in a decade as fears intensify that the spreading coronavirus will hurt corporate income and some companies’ ability to repay debt. The scale of the crisis depends on how long it lasts, according to Marks, who cited forecasts of as long as 18 months to develop a vaccine.
“If it goes 18 months, we’re going to have a serious event here,” Marks said.
--With assistance from Erik Schatzker.
This article was provided by Bloomberg News.