Key Takeaways
- • Howard Marks, co-founder and co-chairman of Oaktree Capital Management, says artificial intelligence could become the most transformative force in the global economy but that investors face difficulty determining what AI companies are worth.
- • Marks characterizes current interest rates as moderate by historical standards, framing the end of a 17-year era of low rates as a driver of growing credit market opportunities.
- • Marks warns the private credit market has yet to fully reckon with risks built up over the past decade, noting that "the tide has been going out" in recent months.
- • The article appears within a CIO Roundtable series from ASK 2026 (October 28, 2026), alongside related coverage of Asian private credit growth, US mid-market co-investment, and Korean institutional investors shifting to defensive positions.
Summary
Howard Marks, co-founder and co-chairman of Oaktree Capital Management, told KED Global in a CIO Roundtable feature published November 11, 2026 that artificial intelligence could become the most transformative force in the global economy. He cautioned, however, that investors face a significant challenge in determining what AI companies are worth, a valuation problem he sees as central to the current market environment.
Marks also characterized interest rates as moderate by historical standards. According to the article, credit markets are offering growing opportunities as a 17-year era of low interest rates comes to an end. The shift marks a structural change for allocators who built portfolios during the low-rate period.
In a separate warning cited in related coverage, Marks said the private credit market has yet to fully reckon with the risks that accumulated over the past decade. He stated that "in the last few months, the tide has been going out," a remark that echoes concerns raised after high-profile bankruptcies in 2025 involving US borrowers such as auto parts supplier First Brands and auto finance company Tricolor.
The broader ASK 2026 conference, held October 28, 2026, produced related commentary on the same theme. Bain Capital Credit identified Asia as private credit's next growth frontier, Future Standard highlighted co-investment opportunities in the US middle market as higher borrowing costs create openings for equity co-investors, and South Korean institutional investors reported shifting toward defensive, private-credit-oriented allocations in anticipation of prolonged high rates. The Bank of Korea, meanwhile, held its policy rate at 3.00%, with a November hike under consideration.
Marks also characterized interest rates as moderate by historical standards. According to the article, credit markets are offering growing opportunities as a 17-year era of low interest rates comes to an end. The shift marks a structural change for allocators who built portfolios during the low-rate period.
In a separate warning cited in related coverage, Marks said the private credit market has yet to fully reckon with the risks that accumulated over the past decade. He stated that "in the last few months, the tide has been going out," a remark that echoes concerns raised after high-profile bankruptcies in 2025 involving US borrowers such as auto parts supplier First Brands and auto finance company Tricolor.
The broader ASK 2026 conference, held October 28, 2026, produced related commentary on the same theme. Bain Capital Credit identified Asia as private credit's next growth frontier, Future Standard highlighted co-investment opportunities in the US middle market as higher borrowing costs create openings for equity co-investors, and South Korean institutional investors reported shifting toward defensive, private-credit-oriented allocations in anticipation of prolonged high rates. The Bank of Korea, meanwhile, held its policy rate at 3.00%, with a November hike under consideration.
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