(CNBC): Howard Marks, co-founder of Oaktree Capital, sees potential risks in the rapid expansion of private credit over the past 15 years, especially in direct lending.

Transformation: Veteran investor Howard Marks expressed concerns about the rapid growth of private credit, particularly in direct lending, which has surpassed $1 trillion. He warned that weaker lenders could be exposed when markets eventually shift, citing recent collapses in the sector. Marks highlighted the importance of discerning credit analysis, as the pressure is already impacting fund flows. While it’s impossible to predict when the cycle will turn, he emphasized the need for caution in the current market environment.

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