Marks notes declining rates made financial engineering and leverage particularly effective at generating returns.
“In this period we've been through of declining interest rates, financial engineering helped a lot, merely owning assets with leverage helped a lot, things regularly went to premium valuations.”
Marks observes a 17-year period without profound low points led people to forget leverage risks.
“And from March of o nine until, let's say, January '26, there generally were not profound low points. And when good times roll on that long, people forget about the possibility of bad times.”