Oaktree's Marks Weighs In on Big Tech Debt Sales

• Big Tech firms like Google, Microsoft, and Amazon are issuing long-term debt (30-100 years), with Google's 100-year bonds paying 5.8%.
• Howard Marks interprets this as a sign of rising 'optimism' and 'credulousness' in the market, making it challenging to find investments that yield 'excess returns.'
• He recommends that investors looking to capitalize on new technologies like AI should buy equity (stock) to gain from potential upside, rather than debt, due to the inherent uncertainty and potential for outsized gains.

Oaktree's Howard Marks expresses concern over the 'optimism' and 'credulousness' evident in the market, particularly with Big Tech companies issuing long-term debt. He cites Google's 100-year bond as an example, suggesting that such an environment makes it difficult to achieve 'excess returns.' Marks advises investors in promising new technologies like AI to buy stock for potential upside rather than lending money for fixed returns.