Marks reports Oaktree's high yield default rate is roughly one-third the market average over forty years.
“And so, over the last forty years, on average, something like 3.6 or 3.7% of all high yield bonds have gone into default every year, and our default rate has been roughly a third.”
Marks observes S&P returns almost never fall between eight and twelve percent despite ten percent average.
“And not only is that an interesting phenomenon to think about, but even more so, the fact that the return on the S and P, which averages 10, is almost never between eight and twelve.”