$HYBOND - Howard Marks advocates for investing in high-yield bonds, citing healthy absolute returns and fair relative pricing despite narrow yield spreads. He emphasizes the potential for active managers to outperform by reducing credit losses in this environment.
$CREDIT - Howard Marks suggests investors should consider public credit instruments, challenging the trend of favoring private credit. He argues that credit instruments currently offer higher expected returns compared to equities.
Bearish:
$SP500 - While not explicitly recommending a short position, Howard Marks suggests that credit instruments may outperform equities, implying potential underperformance of the S&P 500.
$PRIVCRED - Howard Marks expresses caution about private credit, highlighting potential hidden risks and suggesting that its flaws may not yet be fully visible.