In an investor memo now ricocheting throughout the alternative asset industry, Oaktree Capital Management chairman Howard Marks has blamed the spreading financial crisis in part on mark-to-market accounting.
Offering a wide-ranging analysis of the recent turbulence in financial markets that has rocked Wall Street and alternative investments since late last summer, Marks wrote that mark-to-market accounting was the “accelerant” that “turned out to be one of the main contributors to the boom/bust cycle”.
