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Business & Markets · 2007-02

The Race to the BottomPDF Download

Howard Marks

Marks describes how competition among providers of capital can weaken lending standards. The memo examines the concessions people make when they fear missing an attractive opportunity.

It reads well as a study of incentives under pressure. The difficult part is recognizing the same pattern while participants still feel rewarded for taking more risk.

0.1 MB · SHA-256: 2fe72d448802f923422ada4194e64293ac9a7e01ea3947fcb7c21c3132555ba4